PRACTICAL SOLUTIONS platform . Initially , Twitch took action against approximately 150 users during the final months of 2021 . However , it was reported that in January 2022 , 40 individuals were arrested in relation to the Twitch scandal . 15 This was discovered in the later months of 2021 when Twitch found that a group of streamers was receiving hundreds of dollars in donations daily . The donations were made in Bits , the Twitch currency used to tip or donate to streamers . The Bits always seemed to find their way back to the donating party . As it turns out , the Bits were reportedly purchased using stolen credit cards , and this was part of a scheme to launder money through the Twitch platform . The goal was for the perpetrators to use the stolen credit cards to purchase large sums of Bits , work out an agreement with streamers , “ donate ” the Bits to them and have the streamer later send most of the Bits back where they could be cashed out .
The Counter-Strike : Global Offensive video game series previously had “ CS : GO ” container keys available to purchase in-game . “ These purchased items could be sold and exchanged on the Steam Community Market virtual trading platform .” 16 In 2019 , however , developers of the Counter-Strike game series decided that “ CS : GO ” container keys could no longer be bought and traded . According to Counter-Strike , they made this decision
The online video game industry has seen a surge of fraudulent and money laundering because worldwide fraud networks began using “ CS : GO ” keys to liquidate their earnings . At that time , they also noted that almost all significant purchases traded on the market were believed to be fraudulent . 17
Reported in January 2019 , a joint investigation by The Independent and the cybersecurity firm Sixgill uncovered that Fortnite ’ s in-game currency was being used to launder money from stolen credit cards . 18 According to a report by The Independent and Sixgill , the money laundering schemes operated by hackers who would “ access someone else ’ s credit card information , and then use it to create a Fortnite account and buy V-bucks ( the game ’ s currency ). Once the account fills up with V-bucks , it is then sold through a legitimate vendor like eBay , or on the dark web , for lower rates than gamers will get in the game or through an authorized online store .” 19
Conclusion
The online video game industry has seen a surge of fraudulent and money laundering activity in recent years . Due to its lack of targeted laws and regulations locally and internationally and few KYC rules , the video game industry fosters an environment for criminal financial activity .
As financial crime and money laundering strategies become more sophisticated , so should AML practices . With the gaming industry in constant growth and projected to hit a staggering $ 298 billion by 2027 , money laundering related to criminal activities is expected to rise . 20
Overall , to combat money laundering in the online video gaming industry , game developers and law enforcement agencies should work together , combining technology and regulations , to identify , track and prevent financial crimes from occurring .
Although there are few “ regulations to prevent money laundering in the online video game industry , the Financial Action Task Force added a note to money laundering Recommendation 15 in 2019 . According to this note , perspectives on the regulation and supervision of virtual asset service providers have been introduced . It is believed that money laundering in the gaming sector will get curbed by introducing new regulations .” 21 Unfortunately , until this happens , criminals may continue to take advantage of the absence of regulations within the online video gaming industry . activity in recent years
Mavis Bennett , CAMS , AVP transaction monitoring manager , Community Federal Savings Bank , NY , USA
40 acamstoday . org