Businesses rarely discussing Metaverse cybersecurity in 2021 earnings transcripts, finds GlobalData

Virtual and Augmented Reality (VR and AR) are gaining traction amidst the rising Metaverse trend. There have been very few mentions around the Metaverse cybersecurity trend in 2021 earnings transcripts. Cybersecurity mentions peaked in Q3 2021 but has not been on similar levels despite the Metaverse mentions’ increase in Q4 2021, observes GlobalData, a leading data and analytics company.

GlobalData’s Filing Analytics platform reveals that e-commerce and digitalization continue to be overall key themes in Q4 2021, while VR, AR and digital media are top themes discussed around the Metaverse.

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “All the crypto, NFT, VR, AR and gaming hype around the Metaverse seems to be overshadowing cybersecurity risks. Not to downplay all the traction, yet firms will eventually need to discuss cybersecurity solutions in the Metaverse to achieve the best of all digital multiverses. However, looking at overall theme mentions, cybersecurity witnessed double-digit spikes in Q1 2021 and Q3 2021, with Q4 mentions unlikely to reach Q3 levels despite all the metaverse hype.”

Identity management, data and cloud security were key sub-themes discussed around cybersecurity in 2021. At the same time, there are worrying signs with ‘ransomware’, ‘malware’ and ‘cyber attacks’ being among the top keywords around cybersecurity in 2021.

Pereira concludes: “Cybersecurity sentiments are up sequentially by slightly over 4% in Q4 2021. Yet, there are alarming issues around the recent Log4J vulnerability. Businesses will need cybersecurity solutions to avoid fraud in the Metaverse by mitigating privacy concerns in VR and AR, while the largely unregulated crypto and NFTs continue to pose risks.”

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