Analyzing Organized Crime:4

Cybercrime: getting paid and getting away with it

Money acts as one of the key drivers for cybercrime. Add to this the lower risk, and there is little wonder that we are witnessing the evolution of traditional crime to the digital sphere. In the previous research papers we focused on the service based nature of cybercrime, where anybody can be a cybercriminal because the ability to outsource any component of the attack is now available on the surface web. Indeed, we have already witnessed some of the major breaches aided by this service based nature.

This of course is only part of the story. Whilst it may be the highest profile in terms of media coverage, it does not address the key component of ‘getting paid’. The use of virtual currencies being used in cyber attacks were covered in Digital Laundry, however this does not tell the whole story, and getting ‘away with it’.

In the latest research Jackpot! Money Laundering through Online Gambling  analyze the role of online gambling sites with money laundering. Although this may be seen as a rather obvious issue, the scale and ease with which such sites facilitate laundering may be surprising. For example, the numbers of unlicensed sites are over ten times those licensed operators. We are also witnessing many sites now operating on the Dark Web, and leveraging virtual currencies. If we add to this an eco-system that provides a multitude of tools that aid obfuscating those laundering funds there is no doubt that the challenge for law enforcement is significant.

According to Troels Oerting, the Head of the European Cybercrime Centre “Almost all organised crime is profit driven. In the ‘real’ World and in the ‘virtual’ World. Back in the old days of prohibition - in Al Capone’s Chicago - the money trail became the key to get criminals behind bars. ‘Follow the money’ became an integrated part of education on police and prosecutors academies.

The saying is still valid. But the rules of the game are changing. Money is normally laundered in 3 stages: Placement - Layering and Integration. This was easy to follow in the ‘old days’. Money continue to flow inside and between countries, regions and globally and the speed and ease in doing so is a necessity in our global interconnected world. Money is the primary goal for criminals - their business model. It is also needed for fuelling criminal operations - and to finance terrorism or violent extremism. A lot of crime will move into cyberspace. To take advantage of a new ‘business opportunity’ with endless income and limited risk. But also to take advantage of the ability to be unidentifiable on the dark net and on stealthy services.

Finally criminals and terrorist will also be attracted to virtual currency and the advantages this un-regulated payment system will bring. The case against Liberty Reserve show, that money laundering is not a ‘penny game’ and it is facilitated in jurisdictions which are not always helpful to mainstream policing.

In EC3 we build on ‘financial intelligence’ in order to integrate this important information flow to become part of the trigger for recommending investigation to Member States against networks and their kingpins. It is a difficult, complicated and time consuming task with many legal rules to observe. But we will continue. And also continue to inform the public on the state of play. It is a difficult job to keep crime at ‘an acceptable level’ in cyberspace and we will continue to need a discussion and debate on how to strike that balance. We will try to do our part.”

Addressing the issue

National instruments to address global crime are hugely inefficient as money flows can cross boundaries at the click of a button. It is for this reason we have witnessed the development of centres such as the European Cybercrime Centre that aids collaboration between global law enforcement. Equally, the centre establishes co-operation between the private sector that we have been hugely supportive of with my recent appointment as special advisor.

Other examples of law enforcement collaboration is with the Global Initiative against Transnational Crime, a newly established network which brings together law enforcement professionals with experts from other sectors such as policy-makers, the private sector, the development sector and academia. “As globalization and technology enable criminality at unprecedented levels, we urgently need new thinking, innovative and proactive responses that are predicated upon building partnerships between different actors and across borders.” Mark Shaw, Director, Global Initiative against Transnational Organized Crime.

It is clear that without an effective platform to collaborate across multiple borders cyber-criminals are getting paid, and getting away with it.