Are the current market dynamics, in which centralized exchanges dominate cryptocurrency trade volumes, likely to change over the next few years? Europol predicts that privacy-conscious traders will turn to ‘criminal’ services for the digital underground in response to international regulatory requirements for identity verification at established venues. Check out more about Charity Coin
Europol investigates Cyber Crime of the Future
Europol, formerly the European Police Office and Drugs Unit (previously known as the European Police Office and Drugs Unit), recently published its annual assessment of cybercrime risk landscape for 2019. This report examines the possible impact of technological developments like artificial intelligence (AI), quantum computing, on cybercrime. It also includes a section on what it calls the criminal abuse of cryptocurrency.
According to the agency, cybercrime investigators have reported that cryptocurrencies still pose a challenge for law enforcement. The agency also noted that “Crypto investigations have become a major part of law enforcement’s daily operations.” Investigators need training in order to be able to handle these types of investigations.
According to Europol’s findings, cryptocurrencies play a crucial role in the underground economic system. They are used to make most “criminal-to-criminal” (C2C), payments on darknet forums or marketplaces. Many attackers also demand payment for C2C payments. It is claimed that criminally obtained funds are not only difficult to track, but can also be diluted through mixing services which serve to obscure the financial trail.
Europol Predicts the Rise of Crypto Exchanges in Digital Underground
Europol Headquarters in the Hague (Netherlands),
According to the report, the most notable development in crypto is that frauds and attacks which previously targeted fiat currencies or other payment systems have been modified to include cryptocurrencies. Europol routinely detects malware and phishing that targets crypto-investors or companies. It also looks for new frauds such as investment frauds related cryptocurrency. These approaches are more likely to succeed because of the less knowledge that potential victims have about these types of assets.
Cryptojacking is still a problem, but it appears that the activity has declined since 2018. This may be partly due to Coinhive’s March shutdown, which was the most popular mining script. According to the report, the most popular cryptocurrencies are those that can be used with GPU or CPU mining and are hard to track. Monero was the first to be considered for this type of activity, as it ticked both of these boxes. These incidents can have an impact on many people, but the average victim is not usually hurt so it is seldom reported.
Europol reported previously that there was a shift to privacy-focused cryptocurrencies like monero and zcash, but it now states that BTC is still the preferred currency for criminal use. This trend is centered on darknet markets. Many of these market accept XMR or trade in it exclusively.