Virtual worlds could be the next target for online criminals, raising new challenges for UK organisations, according to government-backed security body the Cyber Security Knowledge Transfer Network (KTN).

Tony Dyhouse, the newly appointed director of the organisation, argued that, as companies increasingly use online virtual environments to cut costs and gain competitive advantage, they could expose themselves to greater risks.

"An interface like Second Life could be the browser of tomorrow and it will bring a lot of challenges, so we need to start thinking of the problems that might be facing firms," he said. "We are looking to focus on the problems facing the captains of industry in 10 years' time."

The Cyber Security KTN aims to engage with industry, academia and government to identify the challenges, and respond in a more cohesive way to help boost the UK's cyber security.

Dyhouse explained that part of his mission as incoming director is to ensure a more co-ordinated response to current threats.

"A lot of innovation is going on in this country, and only occasionally do we talk to each other. This silo mentality is not good enough," he said. "The threats are worldwide and those seeking to undermine us operate worldwide, so we have to decide how best to deal with that."

Dyhouse added that the designing and engineering of IT networks and software is still being done without adequate provision for security, a problem made worse when budgets are cut.

"We also need more rigorous testing," he argued. "We need to make software with flaws unacceptable. If you come back from the supermarket with products gone bad it is unacceptable, but with software it seems it's OK."