CYBER CRIME and MONEY LAUNDERING where do we stand? 16/11/2018 Bucharest

Transcription

1 CYBER CRIME and MONEY LAUNDERING where do we stand? 16/11/2018 Bucharest

2 cc frauds intrusion malicious applications data stealing ransomware 2

3 cybercrime is money online transfer services bank accounts (individuals/companies, real/fictitious) smurfing (breaking down transactions) collecting accounts purchase of electronic money and use of e-wallets cross border payments, global accounts (Earthport, TransferWise, TransferGo) Sending money overseas used to be expensive, slow and confusing Not anymore! 3

4 European Money Mule Action EMMA 1 EMMA 2 EMMA 3 identified interviewed arrested nearly 700 money mules were identified across Europe and 81 individuals were arrested after 198 suspects were interviewed by law enforcement agencies. With the support of over 70 banks, significant financial losses were discovered and prevented, and over 900 victims of this crime were identified. More than 90% of the reported money mule transactions were linked to cybercrime 580 money mules were identified, 178 individuals were arrested and the national law enforcement agencies interviewed 380 suspects in the course of the action week[ ], with overall reported losses amounting to EUR 23 million. [ ] The successful hit on this wide-spread crime was supported by 106 banks andprivate partners. 159 arrested, 409 suspects interviewed by law enforcement, 766 money mules and 59 money mule organisers identified as a result of the European Money Mule Action EMMA3, a global law enforcement action week against money muling [ ] EMMA3 saw 26 countries participating, as well as Europol, Eurojust, the European Banking Federation (EBF), 257 banks and private-sector partners #DontBeaMule campaign 4

5 break the connection between the sending address and the receiving address anonymity the operators behind the May 2017 global ransomware incident WannaCry converted their proceeds into Monero in the first half of 2018, Monero was used in 44% of cryptocurrency ransomware attacks superior mining algorithm, adaptive block size limit, ring signatures 5

6 what attracts launderers? Unlike the traditional money laundering methods, which rely on the banking system, cyber-laundering depends on the use of various types of transactions and financial services providers, ranging from wire transfers, cash deposits/withdrawals and e-money transactions to money mules and remittance services Eurasian Group on Combating Money Laundering and Financing of Terrorism Cybercrime and Money Laundering anonymity (no face-to-face transactions, proxy connections, pre-paid, encryption) speed (digital) facility (no expert work) costs (hiring a botnet - $250, keystroke logger - $50, website hosting for phishing scam - $20). globalization (free movement of people, new payment technologies) cross border activity (several jurisdiction) 6

7 cyber laundering: money laundering 2.0 Cyber criminals are using a combination of new cryptocurrencies, gaming currencies and micropayments to launder up to $200 bil. in illicit gains Bromium study, 2018 virtual currencies - primary tool used by cybercriminals for money laundering small electronic payments made through platforms to avoid triggering alerts (microlaundering techniques) unregulated financial services (stored-value cards, casinos) converting stolen funds into game currencies or in-game items (Minecraft, FIFA, World of Warcraft, GTA 5) 7

8 If cybercrime was a country it would have the 13th highest GDP in the world Bromium study,

9 THANK YOU! QUESTIONS? Florina-Silvia POPA prosecutor Directorate for Investigating Organized Crime and Terrorism 9