Cash Reigns Supreme For Cybercriminals

Cash may be losing its place as a go-to payment method for consumers, but according to the European Union’s law enforcement agency Europol, cybercriminals are revitalizing the use of cash as a preferred method to launder the proceeds of their crimes.

In a strategic report titled “Why Is Cash Still King?” the agency examines how money laundering methods have remained tremendously traditional despite the rise of cybercrime and the rapidly changing face of misconduct.

“The use of cash by criminals remains one of the most significant barriers to successful investigations and prosecution,” Europol Director Rob Wainwright said in a company release.

According to Europol, almost all crime types make use of cash to facilitate money laundering in some way, but with the rise of new technologies like virtual currencies, cash is now being used to mask the criminal origins of proceeds.

Suspicious physical cash movements have become a main trigger for fraudulent transaction reports amongst financial institutions across the EU, making up more than 30 percent of total reports, Europol confirmed.

But connecting cash to criminal activities remains a significant challenge for the law enforcement agency.

“It is a threat that has not received sufficient international attention or legislative solutions. A fragmented enforcement approach at [the] national and international level, and the differing regulatory frameworks across the EU Member States, are widely exploited by criminals, who adapt their methods and routes to take advantage of these loopholes. Stepping up efforts to increase international cooperation and information exchange, and establishing a more harmonized approach among EU Member States concerning cash movements within the EU, are crucial if we are to tackle these criminal activities,” Wainwright explained.

Just weeks ago, Europol led a joint investigation team operation to dismantle a high-level cybercriminal group who wreaked havoc by targeting banks in countries across all continents, channeling and cashing out the profits from the use of its malware along the way.

Physical cash smuggling remains one of the most commonly used methods of money laundering, resulting in EU authorities detecting and/or seizing an estimated €1.5 billion (roughly $1.7 billion) in cash each year.

The strategic report provides recommendations on practical solutions that may assist in curbing the growing use of cash for criminal purposes, while also improving the rate of successful convictions.

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