Cybersecurity Requirement: Cybercrime Investigation

Blog / Cybersecurity Requirement: Cybercrime Investigation

The Covid-19 outbreak has intensified the threat posed by cybercrime money laundering methods. Fraudsters have been able to attack vulnerable individuals and organizations more readily as online financial activity has increased and consumer behavior has changed, allowing them to take advantage of regulatory blind spots.

Given the danger and the possibility of severe fines, banks, financial institutions, and other obliged entities need to ensure that they understand the compliance risks they face and are ready to implement an appropriate cybercrime AML response. Virtual currencies are more vulnerable to theft and compromise than physical ones. Bad actors from all over the world pose an increasing threat, making cybercrime detection and prevention a top priority for security.

What Exactly is Cybercrime?

The phrase is defined as "criminal action or a crime involving the Internet, a system software, or computer technology; identity theft, phishing, and other types of cybercrime." Individuals, organizations, and governments are all targets of cybercrime. The consequences of that crime differ depending on the victims, but cybercrime may be characterized as an information technology war in which information is used to acquire, destroy, or manipulate information—the subsequent warfare in cyberspace. Involved in power conflicts, profiteering, intimidation, threats, power grabs, destruction, spying, information manipulation, and money laundering, information technologies are employed to strike those targets and have become instruments of crime, terrorism, and warfare, whether economic or not.

Today's world is complicated, globalized, and dominated by the extensive usage of Information and Communications Technology devices, infrastructures, and services. Citizens, organizations, and nations are all becoming more reliant on electronic gadgets for everything. However, the digital world is precarious. There are organizational, managerial, legal, and technical vulnerabilities that attackers might exploit at various levels. Furthermore, some business models, such as those that rely on personal data, consumer profiles, and the monetization of behavior, maybe both be a danger to data privacy and a source of profit for licit or illegal enterprises who know how to exploit these models.

The internet's rise has brought convenience, but it also opened doors to cyber laundering

The Model of AML

One does not have to seek much further to discover a successful model for this approach—a page from financial institutions' (FIs') anti-money laundering (AML) initiatives may be adopted straight. AML personnel study how cybercriminals earn and transport the proceeds of their illegal actions every day. AML groups, in collaboration with anti-fraud and other financial intelligence units, identify a wide range of cybercrimes, record important evidence regarding suspicious activity, and prevent countless crimes from being carried out. The information and evidence uncovered by AML programs are subsequently sent to the Financial Crimes Enforcement Network (FinCEN), a government organization that analyzes the data and makes it available to law enforcement investigators. Because the majority of cybercrime is motivated by profit, AML work provides substantial insight into criminal activities as well as the opportunity for severe disruption. 

Many people assume that investigating cybercrime is solely the responsibility of law enforcement. However, as AML's work shows, law enforcement cannot accomplish it alone. Because of cybercrime's technological, anonymous, financial, and worldwide character, law enforcement must collaborate with organizations and companies that have access to information about what the criminals are doing. In many respects, the government has deputized AML specialists to investigate and gather information concerning money laundering and other illegal conduct. Law enforcement would be unable to learn about and respond to the massive amount of financial crime without this cooperation.

How to Comply with the Global AML Guidelines?

According to Financial Action Task Force (FATF) guidelines, banks, financial institutions, and other obliged entities must implement risk-based AML/CFT procedures to cope with the AML/CFT threats they face, according to FATF guidelines. In reality, this implies that businesses must undertake risk assessments on their customers and implement a proportional anti-money laundering response. In the context of cybercrime, It is an essential dimension of AML/CFT software to contain Customer Due Diligence, Transaction Monitoring, Sanctions, PEP screening, and Adverse media monitoring mechanisms and processes to identify their customers and track their transactional activity regularly. 

Sanction Scanner's AML/CFT software contains all the aforementioned mechanisms; if you want to safeguard your business from the offenders of cybercrime and money launderers, you can contact us to learn more about our product and request a demo.

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