The days of extended reality being little more than an exciting experiment in the enterprise are over. Based on our research, companies worldwide are using XR to enhance training, transform collaboration, improve customer service, and even boost creativity. But they’re still struggling with a major adoption and management strategy: XR security.
XR devices, and software collect and manage huge amounts of data – more than ever before. Some of the most cutting edge headsets aren’t just collecting usage insights, they’re reacting to biometric data, analyzing employee actions, even helping businesses to map entire environments and processes for digital twins. Without proper security protocols, all of that data can easily be exposed to criminals.
Plus, since the immersive nature of XR can blur the lines between virtual and physical realities, detecting and mitigating security issues isn’t always easy. So, how do companies unlock the potential of XR, without the security and compliance headaches?
Why XR Security for Enterprises Now More Than Ever
The importance of XR security isn’t a new concept for most enterprises – at least it shouldn’t be. Whenever a company integrates new technology into their processes, they need to think about risks, threats, and manage compliance – it’s just par for the course.
But it’s also fair to say that XR tech, and adoption rates have evolved fast – faster than most security strategies can keep up. By 2032, the market for XR tech is expected to reach a massive $1625.48 billion. Yet, we’ve only seen a handful of endpoint device management solutions and cloud security systems actually built to support XR.
Companies can’t afford to ignore that gap anymore – not as XR innovations evolve from pilot programs into full scale elements of everyday business workflows.
After all, XR doesn’t just use data. It soaks it up, constantly, intimately, and often invisibly. Devices track where you are, what you’re looking at, how long you’re paying attention, your voice, your movement speed, your surroundings. Some even monitor your biometric signals like pupil dilation and heart rate. It’s a nightmare scenario for enterprise compliance teams.
Many of the companies adopting XR are already navigating complicated compliance and security frameworks. Just look at the healthcare industry that uses simulations to train surgeons – or the finance industry that uses XR for customer service. They all have rules to follow.
Every training initiative, digital twin strategy, or hybrid collaboration app involves proprietary, often regulated data, streamed and shared across cloud networks, edge devices, and third-party software stacks. All the while, the threats are evolving.
Location tracking data can be reverse engineered to expose physical facilities. Biometric signals can be harvested for identity modelling and deepfakes. Persistent ambient listening tools can capture enterprise secrets. Even holographic visualizations of product designs leave IP unprotected and floating in the metaverse.
Unique XR Security Challenges in Workspaces
Here’s the thing about XR: it’s not just “a new platform.” It’s an entirely different paradigm. And that means the way we approach XR security has to be rebuilt almost from scratch.
In traditional IT, you secure endpoints, encrypt databases, lock down firewalls, and authenticate users. It’s all about boundaries between users, data, and devices. But in XR, those boundaries melt away.
You’re not sitting at a desk behind a screen. You’re walking through digital environments that blend with physical space. You’re sharing your literal surroundings with your software. And security? It has to follow you through that shift, or everything else falls apart.
Just some of the core threats right now include:
1. Spatial Data Leakage
XR systems with digital twin capabilities build 3D maps of real-world environments in order to create convincing mixed reality overlays. That might include a detailed rendering of your factory floor, your boardroom, or even your CEO’s home office.
If this spatial data gets out, you’re looking at a massive exposure risk. We’re not just talking about blueprints. You’re not just risking blueprints getting into the wrong hands. You’re risking the loss of real, personal data. We’re talking about context, how space is used, who is in it, what they’re doing.
A 2024 report from the University of Exeter warned that current privacy laws aren’t equipped to handle this level of spatial fidelity. The maps XR creates aren’t just images, they’re behavioral cartographies, and that creates real issues with compliance.
2. Avatar Spoofing and Identity Theft
In virtual collaboration spaces, like Microsoft Mesh and its Immersive Spaces, people are represented by avatars – often highly customizable, and increasingly realistic. But how do you verify that the person you’re meeting with is really who they say they are? Spoofing avatars in poorly secured platforms is shockingly easy. All it takes is a compromised login and suddenly your “CFO” in the next strategy session isn’t your CFO at all. It’s someone fishing for trade secrets.
Now that criminals have access to AI tools that make it shockingly simple to create highly realistic deepfakes – particularly for avatars, identity theft in the metaverse is becoming a major issue. Some criminals can even replicate the voice of the person they’re trying to mimic.
3. Biometric and Behavioral Surveillance
Hand and eye-tracking capabilities are becoming increasingly commonplace in XR headsets, alongside accessories that can monitor all kinds of data, from heart rates, to stress levels. On the one hand, this data is valuable – particularly if you need in-depth insights for training or want a more effective way to secure a device.
But there are serious XR security and privacy risks to consider too. Some XR tools can detect cognitive load, engagement levels, even mood. This data is gold for behavioral profiling, and a legal minefield under frameworks like GDPR and HIPAA. What happens when this data is stored in third-party analytics platforms? Or worse, when it’s monetized without consent?
4. Cross-Platform Vulnerabilities
XR doesn’t live in isolation. You’ve got hardware (headsets, controllers, wearables), software (custom apps, cloud-hosted VR platforms), and integrations (with Teams, Zoom, Slack, etc.). Each touchpoint is a potential weak link. If your endpoint security covers your laptops but not your Meta Quest devices, you’re already dealing with a serious problem.
And patching? It’s chaotic. Different vendors, staggered update cycles, and often no visibility into what’s secure or not. Some companies, like Meta, and PICO are developing platforms that make it easier to track how data moves across platforms, but the risks are still there.
5. Voice and Visual Eavesdropping
Remember when microphones and cameras became a consistent part of every office setup, and countless employees worried that these devices were always on – watching, or listening to them? Now we have the same worry with XR devices. Smart glasses, and headsets can capture all kinds of voice and visual data, often without a user being actively aware.
If a criminal can tap into a feed – particularly one moving through the cloud, they could potentially record sensitive conversations. Eavesdropping is a real concern, particularly when your teams are using XR to collaborate on holographic product demos, or new ideas. Anything that’s visible in the virtual world could be vulnerable.
Enterprise XR Security Standards Emerging Today
So here’s the question that every enterprise eventually asks: “Is anyone actually setting the rules for this stuff?” The answer? Kind of. But it’s complicated.
Just like the AI space, the XR environment often evolves faster than regulators can write white papers and policies. That doesn’t mean it’s a lawless frontier though. Companies using XR still need to follow basic rules and frameworks (ISO, GDPR, SOC 2, etc). They also need to keep up with new regulations that are starting to emerge worldwide.
First, well-known standards like GDPR already apply in XR security frameworks. If your XR platform captures eye movement, facial scans, or even the layout of someone’s home office? That’s personal data. And under GDPR, it needs lawful basis, data minimization, and explicit consent.
SOC 2, meanwhile, has real implications for XR vendors offering SaaS platforms. Enterprises expect the same controls over data availability, confidentiality, and processing integrity in immersive platforms as they do in CRM or finance software.
ISO/IEC is actively drafting standards that address the specific challenges of XR environments. Working groups like ISO/IEC JTC 1/SC 24 are exploring spatial data, real-time rendering, and the secure handling of immersive content. In the United States, the National Institute of Standards and Technology (NIST) is also working on some initial guidance for immersive systems. It’s focusing on how extended reality intersects with privacy, identity, and cybersecurity.
Then, as regulators continue to play catch-up, the industry is regulating itself. The XR Association develops policy recommendations and works with lawmakers to draft frameworks. The IEEE is even tackling the ethics of mixed reality environments.
Vendors are getting involved too, Companies like Microsoft, Meta , Varjo, and Unity are baking enterprise-grade controls into their platforms: granular access permissions, encrypted session management, and compliance dashboards tailored for IT admins.
Technology and Tools for XR Security
XR platforms are becoming core infrastructure, and with that shift comes a big question: how do we keep immersive experiences secure without breaking the experience itself?
Mastering XR security isn’t going to be easy, but it’s not impossible. Technologies are already emerging to give early adopters a head start.
Let’s walk through what’s actually working, and what’s coming next.
Core Protections (the Basics for XR Security)
Before you dive into quantum encryption or avatar-based identity models, you need a solid base. These are the fundamentals. The guardrails that every XR platform should have in place, regardless of its use case or industry.
End-to-End Encryption for Spatial Streams
In XR, your content isn’t static. It’s spatial, dynamic, and often real-time. That collaborative design review with holographic schematics? It needs the same level of encryption as a financial transaction. Without it, your IP is floating through the airwaves unguarded. Encryption options, offered by solutions like Meta Quest for Business, and the PICO Business Manager, ensure that what happens in the room, virtual or not, stays in the room.
Multi-Factor and Biometric Authentication in Virtual Spaces
Stolen passwords are still a major security threat, even in the metaverse. Relying on users to type a username and password into a system to access crucial data isn’t just impractical, it’s not secure enough. XR demands authentication that’s invisible but ironclad. That’s where biometrics come in, iris scans, facial recognition, even voice matching.
Apple’s Vision Pro, for example, uses Optic ID, verifying users via detailed scans of the iris. It’s frictionless, fast, and fits the immersive paradigm.
Headset-Level Endpoint Security
XR headsets are endpoints. Just like your laptop or phone, but with way more sensors and way fewer built-in protections. Solutions like ArborXR are stepping up, offering remote device management, firmware patching, and ISO 27001-level data controls designed specifically for XR fleets.
But some vendors focusing on the enterprise offer their own in-built solutions too, like PICO with its Business Manager suite, and Meta with Meta Quest for Business.
Advanced Tactics: Going Beyond the Basics
Once the foundations are in place, it’s time to move beyond prevention into active defense. These tools and tactics are built for the unique ways XR works, real-time, sensory-rich, and highly contextual.
Secure Sandboxes for VR Simulations
When companies run security drills or sensitive training in VR, they shouldn’t happen in an open network. Walled gardens, or sandboxes, give companies isolated XR environments where they can maintain full control over their data.
Sandboxes also allow teams to explore worst-case scenarios, test emergency responses, and trial new features without real-world consequences.
Zero-Trust Networking for AR Field Teams
Smart glasses and XR headsets are increasingly making their way into field-based work, where traditional security strategies don’t apply. In traditional IT, you trust devices inside the firewall. But what if your “office” is a construction site, or a remote repair station?
In XR security, especially with AR wearables in the field, zero-trust becomes essential. Every access request, whether it’s to view schematics or record footage, should be verified in real time. Trust no device, verify every action.
Behavioral Analytics to Spot Deepfakes or Spoofing
Even in XR, identity isn’t just about logins. It’s about behavior. Emerging analytics systems are watching how users move, speak, and interact in immersive environments, flagging anything that seems off. An avatar behaving oddly, or a gesture pattern that doesn’t match historical norms could highlight a compromised session, or worse, a deepfake avatar slipping through the cracks.
Identifying deepfakes and spoofing is going to be challenging, but with AI tools that can learn past behaviors and identity norms instantly, companies have a better chance of staying secure.
Building a Resilient XR Security Strategy
Companies can’t just bolt existing security strategies onto their XR tech and hope for the best anymore. Immersive tech touches everything: people, data, devices, and workflows. Securing it means thinking in layers, loops, and lifecycles. It’s not about adding a few more IT protocols. It’s about designing resilience into every corner of the XR experience.
Cross-Functional Alignment
Here’s the first mindset shift: XR security isn’t just the IT department’s job. It’s not something you “hand off” to your tech lead or cybersecurity partner. It crosses too many boundaries for that. You’ll need real cross-functional alignment:
- IT and cybersecurity teams will manage firewalls, encrypt traffic, and patch headsets.
- Legal and compliance will flag biometric data collection, GDPR exposure, and cloud storage risks.
- HR plays a role too, building training modules, managing access rights, and enforcing policy in onboarding.
Even your ops team needs to be involved – they’ll be the ones integrating XR into daily work, so they know where the gaps really are.
XR-Specific Risk Assessments
Before securing anything, you’ve got to know what you’re securing. That starts with targeted assessments that reflect how XR is actually being used inside your business.
Audit your virtual meeting platforms. Are they end-to-end encrypted? Can you control who joins and what they access? Are recordings being stored, and where?
If your XR tools are tracking eye movements or creating 3D maps of private workspaces, that’s biometric and spatial data subject to regulation. Privacy Impact Assessments help you uncover what’s being captured and what you need to do about it.
Training Matters
Many companies still treat XR like a novelty. That needs to change, especially if teams handle sensitive data in immersive spaces. Security training can’t just cover email phishing anymore.
Onboarding strategies need to introduce teams to XR-specific risks, like how to identify a spoofed avatar, or what to do if a headset goes missing. Companies should even be running simulated attacks in sandbox environments, to identify and address vulnerabilities early.
Red team exercises in sandboxes can also help your teams build muscle memory for situations that feel as real as they look.
Security as Part of the XR Lifecycle
Finally, treat XR like you would any critical IT investment—with full lifecycle oversight.
- Vet your vendors: Ask about compliance, patch cycles, and how they store data. If they can’t answer clearly, move on.
- Make procurement contracts security-specific: Spell out expectations. Define who’s responsible when something goes wrong.
- Monitor everything, continuously: XR systems change fast. Threats evolve faster. You’ll need real-time alerts, patch management, and a feedback loop between your users and your security team.
The Future of XR Security in the Enterprise
Let’s jump ahead a few years down the road. The headsets are sleeker, the visuals sharper, the onboarding frictionless. XR is no longer “new tech”, its core to how teams work. But under the surface, something bigger should be happening: XR security will be getting smarter.
For many companies, this will start with AI. Today’s XR security tools mostly react. Tomorrow’s will be able to predict and prevent threats. Artificial intelligence is already being trained to scan virtual environments for odd behavior, like avatars behaving differently than their usual users, or movement patterns that don’t line up.
Beyond that, we’ll have more effective decentralized identity solutions: blockchain-based credentials that are portable, tamper-proof, and controlled by the user. Your avatar will carry verified credentials across platforms, meaning you don’t have to manage countless logins.
There’s even scope for quantum computing in this space. When it hits, it’ll be able to break today’s encryption strategies with ease. That’s why forward-looking companies are already testing encryption models that can survive that shift, especially for XR data like biometric streams and persistent virtual sessions.
Get Ready for Better XR Security
XR isn’t coming. It’s here. It’s running onboarding sessions, hosting executive meetings, and guiding frontline workers in real-time. Today’s XR technology is just as crucial to enterprises as communication systems or collaboration tools. Its infrastructure, and infrastructure needs security.
Security can’t be something companies patch in later, they need to prioritize it from day one. So if you’re still struggling with XR security, ask yourself:
- Do we know our exposure across XR platforms today?
- Who owns XR risk internally, IT, legal, ops?
- If there were a breach tomorrow, are we ready?
Don’t enter the future of immersion if you’re not ready to take a secure approach. Your data, employees’ safety, brand integrity, and competitive resilience depend on it.