Intelligent CIO Europe Issue 05 | Page 30

TRENDING Digital payment systems are used to help hide the money trail Covert data collection in online forums and interviews with experts and cybercriminals indicate that an estimated 10% of cybercriminals are using PayPal to launder money. A further 35% use other digital payment systems, including Skrill, Dwoll, Zoom and mobile payment systems like M-Pesa. Methods like ‘micro laundering’, where thousands of small electronic payments are made through platforms like PayPal, are increasingly common and more difficult to detect. Another common technique is to use online transactions – via sites like eBay – to facilitate the laundering. Dr McGuire concluded: “The growing use of digital payment systems by cybercriminals is creating significant problems for the global financial system. Revenues that previously would have flowed within proven and well- established banking systems and could be traced, are now outside of its jurisdiction. 30 INTELLIGENTCIO Digital payment systems are most effective when combined with other digital resources, like virtual currencies and online banking. This hides the money trail and confuses law enforcement and financial regulators.” n “ LAW ENFORCEMENT AGENCIES ARE NOW MONITORING BITCOIN, CAUSING MANY CYBERCRIMINALS TO LOOK FOR ALTERNATIVES. Gregory Webb, CEO of Bromium www.intelligentcio.com