Nasdaq GlobeNewswire

Up to $200 Billion in Illegal Cybercrime Profits Is Laundered Each Year, Comprehensive Research Study Reveals

Del

Cybercriminals turning to virtual currencies, video game currency and digital payment systems like PayPal to convert illegal revenue into clean cash

 

CUPERTINO, Calif., March 16, 2018 (GLOBE NEWSWIRE) -- Bromium®, Inc., the pioneer and leader in application isolation using virtualization-based security, today announced the findings of an independent, academic study into the macro economics of cybercrime and how cybercriminals launder and 'cash out' the profits of criminal endeavours. The findings are part of a larger nine-month study titled Into the Web of Profit, sponsored by Bromium. The full findings will be presented at the RSA Conference in April by Dr. Mike McGuire, Senior Lecturer in Criminology at Surrey University, England.

According to the report, cybercriminal proceeds make up an estimated 8-10 percent of total illegal profits laundered globally; amounting to an estimated $80-$200 billion each year 1. Other key findings include:

  • Virtual currencies have become the  primary tool used by cybercriminals for money laundering
  • Cybercriminals are  moving away from Bitcoin  to less recognized virtual currencies, like  Monero,  that provide greater anonymity
  • In-game  purchases and currencies are spurring a  rise in gaming-related laundering;  as  China and South Korea  become  hotspots for gaming-currency laundering
  • Covert data collection found that  PayPal  and other  digital payment systems  are employed by cybercriminals to launder money
  • Digital payment systems laundering often involves the use of  micro-laundering techniques  where multiple, small payments are made so laundering limits aren't triggered

"We invested in this research to instigate a meaningful conversation about how to disrupt the economic systems and poor security practices that enable cybercrime around the world; frankly because it's far too easy for them," commented Gregory Webb, CEO of Bromium. "Today it is easy for hackers to infect machines, steal data, and hold businesses and individuals for ransom or sell stolen IP because enterprise defences are not fit for purpose. It is equally easy for them to wash that money and convert it into cash - and the rise in use of unregulated, virtual currencies is making this even easier. We need to attack the problem in a different way. Law enforcement, the cybersecurity industry and both the public and private sectors need to be vigilant about disrupting cybercrime. Protecting applications that access sensitive data is an absolute requirement. We need a whole new approach to cybersecurity or these figures will continue to increase over time."

Virtual currency could be the future of laundering - but only if it's anonymous

Many cybercriminals are using virtual currency to make property purchases which convert illegal proceeds into legitimate cash and assets. Websites such as Bitcoin Real Estate offer everything from penthouse suites and lavish mansions, to 160-acre private islands, all with the option to buy using bitcoins. Unlike cash purchases which are subject to regulation and scrutiny, properties purchased with cryptocurrency are not as closely scrutinised because cryptocurrencies aren't regulated by any central banks or governments.

The study found that nearly 25 percent of total property sales are predicted to be in cryptocurrency in the next few years. This is concerning financial analysts who worry that allowing swifter, more covert transactions, many with criminal origins, will disrupt global property markets.

However, the report highlights that law enforcement agencies are now monitoring Bitcoin, causing many cybercriminals to look for alternatives. Information on bitcoin transactions can leak during web transactions - typically via web trackers or cookies. This means that connecting transactions to individuals is possible in up to 60 percent of Bitcoin payments.

Researcher and report author Dr. Mike McGuire, Senior Lecturer in Criminology at Surrey University, noted, "It's no surprise to see cybercriminals using virtual currency for money laundering. The attraction is obvious. It's digital, so is an easily convertible way of acquiring and transferring cybercrime revenue. Anonymity is also key, with platforms like Monero designed to be truly anonymous, and tumbler services like CoinJoin that can obscure transaction origins. Targeted organizations must do more to protect their customers."

Laundering through in-game currency and goods is on the rise

The report also indicates that cybercriminals are spending "considerable time" converting stolen income into video game currency or in-game items like gold, which are then converted into bitcoin or other electronic formats. Games such as Minecraft, FIFA, World of Warcraft, Final Fantasy, Star Wars Online and GTA 5 are among the most popular options because they allow covert interactions with other players that allow trade of currency and goods.

Dr. McGuire added, "Gaming currencies and items that can be easily converted and moved across borders offer an attractive prospect to cybercriminals. This trend appears to be particularly prevalent in countries like South Korea and China - with South Korean police arresting a gang transferring $38 million laundered in Korean games, back to China. The advice on how to do this is readily available online and explains how cybercriminals can launder proceeds through both in-game currencies and goods."

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 percent of cybercriminals are using PayPal to launder money. A further 35 percent 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 concludes, "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. 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."

Further findings will be released during the RSA Conference in San Francisco. Dr. McGuire will present the full findings during his speaker speaking slot on April 20th from 09:00-09:45 AM on the Security Mashup track - code MASH-F01.

Methodology

Into the Web of Profit is a nine-month academic study by Dr. Mike McGuire, Senior Lecturer in Criminology at Surrey University. It draws from first hand interviews with convicted cybercriminals, data from international law enforcement agencies, financial institutions, and covert observations conducted across the Dark Web.

About Bromium, Inc.

Bromium protects your brand, data and people using virtualization-based security. We convert an enterprise's largest liability - endpoints -- into its best defense. By combining our patented hardware-enforced containerization to deliver application isolation and control, with a distributed Sensor Network to protect across all major threat vectors and attack types, we stop malware in its tracks. Unlike traditional security technologies, Bromium automatically isolates threats and adapts to new attacks using behavioral analysis and instantly shares threat intelligence to eliminate the impact of malware. Bromium offers defense-grade security and counts a rapidly growing set of Fortune 500 companies and government agencies as customers.

Visit Bromium: https://www.bromium.comRead the Bromium blog: http://blogs.bromium.com/Follow Bromium on Twitter: https://twitter.com/bromiumFollow Bromium on LinkedIn: https://www.linkedin.com/company/bromium

About Dr. Mike McGuire

Dr. Michael McGuire joined the Department as Senior Lecturer in Criminology in September 2012. Dr. McGuire read Philosophy & Scientific method at the London School of Economics where he acquired a first-class BSc Econ and he completed his Ph.D., at Kings College London. He has subsequently developed an international profile in the study of technology and the justice system and has published widely in these areas. Contact: m.mcguire@surrey.ac.uk

MEDIA CONTACTS:

United Kingdom
Spark Communications
bromium@sparkcomms.co.uk
+44 20 7436 0420

United States - Commercial
Mullikin Communications
rich@mullikincommunications.com 
+1 925-354-7444

United States - Public Sector
Sage Communications
Jon-Michael Basile
FedBromium@aboutsage.com 
+1 925.246.3433

______________

1 According to the UN, between $800 billion - $2 trillion is laundered every year https://www.unodc.org/unodc/en/money-laundering/globalization.html




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bromium via Globenewswire

Om Nasdaq GlobeNewswire

Nasdaq GlobeNewswire
Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

+1 212 401 8700http://www.nasdaqomx.com

NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.

Følg saker fra Nasdaq GlobeNewswire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Nasdaq GlobeNewswire

GridGain® Continues In-Memory Computing Industry Leadership in 201818.7.2018 09:00Pressemelding

GridGain Continues Rapid Growth, Delivers Product Innovations, Hosts Vital Industry Conferences and Earns Top Industry Accolades FOSTER CITY, Calif., July 18, 2018 (GLOBE NEWSWIRE) -- GridGain® Systems, provider of enterprise-grade in-memory computing solutions based on Apache® Ignite(TM), today announced continuing strong momentum for the first half of 2018. Key achievements during the first half of the year included more new customer wins in the first half of 2018 than in all of 2017, launching major new products including GridGain Professional Edition 2.4 and GridGain Cloud, winning several top industry accolades, and driving continued growth of the popular In-Memory Computing Summit® in Europe. Growth New customer acquisition surged during the first half of 2018 with the company acquiring 40 percent more new customers than were signed in all of 2017. New customers acquired in 2018 include leading companies in financial services, transportation, telecommunications, retail, healthcar

Cryptomining Replaces Ransomware as Most Popular Cybercrime Malware18.7.2018 09:00Pressemelding

Analysis of vulnerability and threat trends shows cryptomining malware dominates threat landscape in the first half of 2018 SAN JOSE, Calif., July 18, 2018 (GLOBE NEWSWIRE) -- Skybox® Security, a global leader in cybersecurity management, announced today the release of its mid-year update to the Vulnerability and Threat Trends Report which analyzes vulnerabilities, exploits and threats in play. The report, compiled by the team of security analysts at the Skybox® Research Lab, aims to help organizations align their security strategy with the reality of the current threat landscape. The mid-year update explores trends observed from January to June of 2018. One of the most significant findings is the replacement of ransomware as the cybercriminal tool of choice with cryptomining malware. In the last six months of 2017, ransomware accounted for 32 percent of attacks, while malicious cryptominers accounted for seven percent. By the first half of 2018, the figures had switched almost exactly

ERYTECH Pharma Reports Voting Results from Annual General Meeting Held on June 28, 201817.7.2018 22:30Pressemelding

LYON, France and CAMBRIDGE, Mass., July 17, 2018 (GLOBE NEWSWIRE) -- ERYTECH Pharma (Euronext:ERYP) (Nasdaq:ERYP) announced that its 2018 Annual General Meeting was held in Lyon on Thursday, June 28, 2018. At the meeting, all resolutions for which management recommended a vote in favor, were adopted, including: - Approval of the annual financial statements and consolidated financial statements for the year ended December 31, 2017 and quietus of directors; - Allocation of the financial year's results; - Approval of regulatory agreements and commitments referred to in Article L.225-38 of the French Commercial Code; - Approval of the regulations of the share subscription and/or purchase options plan adopted by the Board of Directors on June 27, 2017; - Authorization for the Board of Directors to grant share subscription and/or share purchase options and/or to issue detachable share subscription warrants to corporate officers and employees of the Company or companies in the ERYTECH Pharma

Williams Scotsman Receives Competition Bureau Clearance for ModSpace Acquisition17.7.2018 22:15Pressemelding

BALTIMORE, July 17, 2018 (GLOBE NEWSWIRE) -- WillScot Corporation (NASDAQ:WSC) ("Williams Scotsman"), a specialty rental services market leader providing innovative modular space and portable storage solutions across North America, today announced that, on July 16, 2018, the Canadian Competition Bureau issued a No Action Letter relating to Williams Scotsman's proposed acquisition of Modular Space Corporation ("ModSpace"). WillScot has now obtained the regulatory approvals required to complete the acquisition and continues to progress towards closing in the third quarter of 2018. About Williams Scotsman Headquartered in Baltimore, Maryland, WillScot Corporation is the public holding company for the Williams Scotsman family of companies in the United States, Canada and Mexico. WillScot Corporation trades on the NASDAQ stock exchange under the ticker symbol "WSC." Williams Scotsman is a specialty rental services market leader providing innovative modular space and portable storage solutio

Minerva Neurosciences Elects Jeryl Hilleman to Board of Directors17.7.2018 22:05Pressemelding

WALTHAM, Mass., July 17, 2018 (GLOBE NEWSWIRE) -- Minerva Neurosciences, Inc. (NASDAQ:NERV), a clinical-stage biopharmaceutical company focused on the development of therapies to treat central nervous system (CNS) disorders, today announced the election of Jeryl Hilleman to the Board of Directors of the Company. "Jeri brings a broad life sciences background to Minerva that includes high growth commercial biopharma, med-tech and data science companies," said William F. Doyle, Lead Independent Director of Minerva. "Her track record of delivering strategic and financial growth through execution, strategic partnering and multiple acquisitions will serve Minerva well as the Company completes five ongoing late-stage clinical trials with roluperidone, seltorexant and MIN-117." Ms. Hilleman is presently Chief Financial Officer of Intersect ENT (NASDAQ:XENT), a medical device company with commercial products for the treatment of chronic sinusitis. Previously, she served as CFO of several public

Orion Biotechnology Awarded a $2M Grant from National Center for Research and Development to Fund Further Development of its HIV Microbicide17.7.2018 21:00Pressemelding

OTTAWA, July 17, 2018 (GLOBE NEWSWIRE) -- Orion Biotechnology Canada Ltd., a developer of novel medical treatments, today announced that its European subsidiary, Orion Biotechnology Polska Sp. z o.o., was awarded a grant of $2M US dollars by the National Center for Research and Development . The grant will fund a project to advance development of the company's innovative microbicide candidate (OB-002H). Designed to prevent the transmission of HIV, OB-002H has the potential to address an urgent and growing need for an HIV prevention product that is affordable, appealing to use, and easily integrates into the lifestyles of people at risk for HIV infection regardless of age, sex or gender. The project is co-financed by the National Center for Research and Development under the InnoNeuroPharm program - Measure 1.2: Sectoral R & D programs of the Intelligent Development Operational Program 2014-2020. Orion Biotechnology will use the grant to complete IND enabling studies, advance OB-002H to

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom