Up to $200 Billion in Illegal Cybercrime Profits Is Laundered Each Year, Comprehensive Research Study Reveals - Seite 2

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 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 percent 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 percent 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 organizations 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.