More than half of gamers in London have been targeted online by scammers, according to research.
TalkTalk has launched a campaign to keep young people safe by highlighting risks.
Data developer George Withers, 32, from London, fell victim while playing online fantasy game World of Warcraft.
Another ‘player’ - possibly a bot - offered him in-game currency to purchase.
When Mr Withers accepted, he was locked out of his account for several months.
The criminals then attempted to siphon off hundreds of pounds via his eBay and linked PayPal, but a variety of strong passwords thwarted them.
Mr Withers said: “If it sounds too good to be true, it probably is.
“I got out of a bad experience quite lightly. It’s one I will really try not to get into again.”
Avid gamer Jamie Woodruff, a leading authority on cyber security, says the “metaverse”, a virtual reality world, is among new ways scammers target UK victims.
The network is one of the least regulated when it comes to internet safety.
TalkTalk data shows over 5,000 Oculus headsets, which most gamers use to access the metaverse, were connected to its network on Christmas Day, placing it in the top five gaming gifts for the first time.
According to the telecom firm, 53 per cent of London’s gamers have been targeted by scammers.
Two-thirds purchased currency in-game, with 67 per cent admitting to handing over financial details to other players when doing so.
The same number of Londoners have already gamed in the metaverse, far higher than the UK average of 29 per cent.
Mr Woodruff warns a lack of ID checks make it easy for conmen to disguise themselves as avatars.
He said: “While scams are the last thing people tend to think about when gaming, it’s important to keep your security front of mind – especially when playing in immersive virtual worlds.
“Whether it’s adjusting the security settings on new devices, taking a break after a long session, practising good password etiquette, or choosing a broadband provider that offers useful security features as standard like TalkTalk, it’s really important to stay safe online when gaming.”
Mark Johnson, TalkTalk’s head of customer security, added: “With internet usage at record levels and more gaming devices being connected to the network than ever before, it’s never been more important to stay safe online.
“Keeping our customers safe is our number one priority, which is why we offer a range of security add-ons including award-winning SuperSafe device protection and our HomeSafe web filter comes included as standard.
“By following Jamie’s easy tips our customers can game with greater peace of mind and ensure their sessions are remembered for all the right reasons.”