Yahoo! News has a piece that tells the tale of some shady activity in Second Life and then spreads out to the issue in general. It's interesting to hear about some of the things that go on in these worlds where no one is supposed to be able to cheat.

Marc Bragg, a lawyer in West Chester, Pa., approached the virtual world as a money-making opportunity, something Second Life maker Linden Lab didn't appreciate. In May 2006, he filed suit against Second Life maker Linden Lab, alleging that the company unfairly confiscated thousands of dollars worth of his virtual land holdings by shutting down his account with them. Linden Lab and some Second Life members have accused Bragg of breaking into HTML code on a virtual real estate auction list and buying virtual land for much less money than he would have paid in a public online auction. Bragg, who made money on the virtual land by renting it out to other Second Life users, claims that Linden Lab froze about $8,000 worth of virtual assets and refused to reimburse him.

Read more here.