TRENDING
Dr Mike McGuire, Senior Lecturer in
Criminology at Surrey University
• Digital payment systems laundering
often involves the use of micro-
laundering techniques where multiple,
small payments are made so laundering
limits aren’t triggered
“We invested in this research to instigate
a meaningful conversation about how to
disrupt the economic systems and poor
security practices that enable cybercrime
around the world; frankly because it’s far
too easy for them,” commented Gregory
Webb, CEO of Bromium. “Today it is easy
for hackers to infect machines, steal data
and hold businesses and individuals for
ransom or sell stolen IP because enterprise
defences are not fit for purpose. It is equally
easy for them to wash that money and
convert it into cash and the rise in use of
unregulated, virtual currencies is making this
even easier. We need to attack the problem
in a different way. Law enforcement, the
cybersecurity industry and both the public
and private sectors need to be vigilant
about disrupting cybercrime. Protecting
applications that access sensitive data is an
absolute requirement. We need a whole new
approach to cybersecurity or these figures
will continue to increase over time.”
Virtual currency could be the
future of laundering, but only if
it’s anonymous
Many cybercriminals are using virtual
currency to make property purchases which
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INTELLIGENTCIO
“
LAW ENFORCEMENT, THE
CYBERSECURITY INDUSTRY
AND BOTH THE PUBLIC AND PRIVATE
SECTORS NEED TO BE VIGILANT
ABOUT DISRUPTING CYBERCRIME.
convert illegal proceeds into legitimate cash
and assets. Websites such as Bitcoin Real
Estate offer everything from penthouse
suites and lavish mansions, to 160-acre
private islands, all with the option to buy
using bitcoins. Unlike cash purchases which
are subject to regulation and scrutiny,
properties purchased with cryptocurrency
are not as closely scrutinised because
cryptocurrencies aren’t regulated by any
central banks or governments.
The study found that nearly 25% of
total property sales are predicted to be
in cryptocurrency in the next few years.
This is concerning financial analysts who
worry that allowing swifter, more covert
transactions, many with criminal origins,
will disrupt global property markets.
However, the report highlights that law
enforcement agencies are now monitoring
Bitcoin, causing many cybercriminals
to look for alternatives. Information on
bitcoin transactions can leak during web
transactions, typically via web trackers
or cookies. This means that connecting
transactions to individuals is possible in up
to 60% of Bitcoin payments.
Researcher and report author Dr Mike
McGuire, Senior Lecturer in Criminology
at Surrey University, noted: “It’s no
surprise to see cybercriminals using
virtual currency for money laundering.
The attraction is obvious. It’s digital, so
is an easily convertible way of acquiring
and transferring cybercrime revenue.
Anonymity is also key, with platforms like
Monero designed to be truly anonymous
and tumbler services like CoinJoin that
can obscure transaction origins. Targeted
organisations must do more to protect
their customers.”
Laundering through in-game
currency and goods is on the rise
The report also indicates that cybercriminals
are spending ‘considerable time’ converting
stolen income into video game currency
or in-game items like gold, which are then
converted into bitcoin or other electronic
formats. Games such as Minecraft, FIFA,
World of Warcraft, Final Fantasy, Star Wars
Online and GTA 5 are among the most
popular options because they allow covert
interactions with other players that allow
trade of currency and goods.
Dr McGuire added: “Gaming currencies
and items that can be easily converted and
moved across borders offer an attractive
prospect to cybercriminals. This trend
appears to be particularly prevalent in
countries like South Korea and China,
with South Korean police arresting a gang
transferring US$38 million laundered in
Korean games, back to China. The advice
on how to do this is readily available online
and explains how cybercriminals can launder
proceeds through both in-game currencies
and goods.”
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