The Europol Internet Organized Crime Threat Assessment recently highlighted that Bitcoin remains the most frequently exploited cryptocurrency in criminal activities. Despite Bitcoin’s dominance, there is a growing trend in the use of alternative cryptocurrencies, including stablecoins and privacy-centric coins like Monero, which are gaining popularity among cybercriminals due to their unique features.
Key Points from the Report
- Bitcoin’s Continued Use in Cybercrime:
- Predominant Cryptocurrency: Bitcoin remains the most commonly used cryptocurrency in illegal activities, including fraud and cybercrime. It is often converted into stablecoins like Tether (USDT) for stability. The report notes that the Tron blockchain’s low transaction fees have made it a preferred platform for USDT transactions.
- Stablecoins in Crime: Stablecoins, particularly those with blacklisting capabilities, provide law enforcement with the ability to freeze suspicious funds, adding a layer of security and traceability in combating financial crimes.
- Rise of Monero and Privacy Coins:
- Monero’s Popularity: Monero (XMR), known for its strong privacy features, is increasingly favored by criminals seeking anonymity. Unlike Bitcoin, which operates on a transparent blockchain, Monero employs advanced cryptographic techniques, such as ring signatures, stealth addresses, and confidential transactions, to obfuscate transaction details.
- Usage in Illicit Activities: The anonymous nature of Monero makes it a preferred choice for illegal activities, including ransomware payments and dark web transactions, where the privacy of users is paramount.
- Evolving Money Laundering Techniques:
- Traditional and Modern Methods: The report also discusses evolving money laundering strategies. While traditional methods like using money mules and international bank accounts persist, newer tactics include the use of encrypted messaging apps for cash-to-crypto exchanges, which help bypass compliance checks and obscure the identities of the involved parties.
- Crypto Debit Cards: The resurgence of cryptocurrency debit cards is noted, as they enable quick conversion of cryptocurrency to fiat cash at ATMs, facilitating the rapid movement of illicit funds.
This report underscores the adaptability of cybercriminals in leveraging both established and emerging technologies to facilitate and conceal illegal activities. The continued use of Bitcoin, the rise of privacy-centric cryptocurrencies like Monero, and the evolving laundering techniques reflect the dynamic nature of cybercrime and the challenges faced by law enforcement in tracking and preventing such activities.
Source: crypto.news
