Cyber criminals launder $200 billion, a year using virtual currencies

The academic survey which is carried by a criminology lecture, at Surrey University, has figured out clearly the amount of money, which cyber criminals washed with the use of cryptocurrencies, gaming currencies and also digital payment system.The number is very high.When estimated globally, a cyber-criminal, proceed are making up around 8-10% of total amount of illegal profits laundered. This leads to $200 billion a single year.

It has become really easy for the hackers, to infect machines, thus stealing data, and holding business and individuals, for the ransom or selling stolen IP as the enterprise are not fit for this purpose. As per contemporary reports, Bitcoin and other virtual currencies forms the basic digital tool used by a cybercriminal for laundering any ill-gotten gains.Criminals tend to shift to less high-profiles and also less trackable system so there is a pronounced shift from Bitcoin.

Its not surprising to see the use of virtual currencies among the cyber criminals for the purpose of money laundering. This is a digital and also an easily convertible way to acquire and transfer the cybercrime revenue.Anonymity is a basic factor for platforms like Monero. A targeted organization can do even more for protecting their customers.

Going away from Bitcoin

The reason why cyber criminals tend to jump on Bitcoin is that its not anonymous enough. A web interaction always create information, which leaks out like web trackers and even cookies, which means even if you use the software tumbler service it is impossible to conceal the Bitcoin user identity. The legal status of Bitcoin is also quite clear at present. There is also a tendency of bitcoin seizures by police forces since 2013.

Recently there is a tendency, among the criminals to turn their attention towards other cryptocurrencies like Monero and Zcash which were more anonymous.With increased use of digital payment system by cybercriminals, there has been a rise of significant problem for the growing financial system.The revenues which previously flowed within the well established banking system and were traceable are now completely out of its jurisdiction.

A digital payment system becomes even more effective when combined with other digital resources like virtual currencies and even online banking. The process hides the money trail and also confuses the law enforcement and the financial regulators.

Actually the problem needs to attacked from a different angle. Law enforcement, the cyber-security industry and also the private and public sectors needs to be vigilant about disrupting the cyber-crime.  Protecting application which access sensitive, is the only requirement.So a whole new approach to cyber-security,is needed or these figures will continue to increase over time.