The current authentication systems suffer from many weaknesses during the transmission of sensitive data across the clients. Textual passwords are commonly used. Users tend to choose meaningful words from dictionaries, which make textual passwords easy to break and vulnerable to dictionary or brute force attacks. Many available graphical passwords have a password space that is less than or equal to the textual password space. Many biometric authentications have been proposed. However, users tend to resist using biometrics because of their intrusiveness and the effect on their privacy. Moreover, biometrics cannot be revoked. In this system, multifactor authentication scheme is proposed. In the three dimensional virtual environment the authentication is given by interacting with the various objects and the user navigation is carried out through the objects.