The crime of virtual property theft has become a serious problem in virtual worlds in recent years. Players of these games are repeatedly falling victim to this crime, with little or no repercussion for the offender. Virtual property often has a substantial real world monetary value and the theft of such items impacts greatly on victims. The problem of virtual property theft is complex, involving many legal, regulatory and technological factors. As such, trying to address this problem in a single dimension is not sufficient, each factor need to be addressed with a multidisciplinary approach. In addressing this problem, this paper provides a model for describing the issue of virtual property trading and the issues associated with virtual property theft. The paper also proposes an approach for handling virtual property theft based on improvements to laws related to virtual property and theft, improvements to the virtual world software components and better regulation from governments.