USD 800 in Bitcoin buy USD 10,000 on the dark web, in an intelligent money laundering service

Security researchers have identified a new trend of lucrative and illicit conversions from Bitcoin (BTC) to cash in their analysis of dozens of forums and markets on the dark web.

Financial scammers are selling money for just 10 to 12 cents to buyers willing to offer a prepaid rate in Bitcoin, according to the new Black Market Report for the third quarter of 2019 of the Armor Threat Resistance Unit.

Avoiding the risks

The Bitcoin cash money laundering scheme works as follows: cybercriminals offer bundles of money, usually from USD 2,500 to USD 10,000, in exchange for a 10 to 12% commission on Bitcoin.

Once the buyer has transferred the cryptocurrency, provide the bank account, PayPal or Western Union data to which the money should be sent.

As an extremely simple service, this agreement not only offers buyers a return above the average of their illegal purchases, but eliminates the need for a mule of money or the risk of entering into compromised accounts.

As the report points out, monetary mules are agents that transfer poorly obtained funds between accounts in exchange for a commission of 10-20% of the value. In general, these actors open expensive commercial bank accounts to prevent fraud alerts from being triggered or attract unwanted attention when carrying out large volume transactions.

In particular, this scheme of conversion of cash into Bitcoin benefits sellers who sell stolen funds due to the fact that they ultimately avoid taking possession of the funds and, instead, are limited to transferring them, with what the burden of risk falls on the criminal buyer.

A very attractive offer

As Chris Hinkley, head of the Armor TRU team, states: “For those scammers who do not possess the technical skills and a solid network of money mules to monetize online bank accounts or credit card credentials, this is an offer that can be very attractive … This intelligent service gives them an additional channel to monetize the large amounts of financial data available underground. “

As previously reported, the United States Secretary of the Treasury, Steven Mnuchin, has recently claimed that cash is not washed to the same extent as Bitcoin, stating that the government intended to prevent the cryptocurrency from becoming the “equivalent of bank accounts with Swiss numbers”.

The reporters responded with some skepticism to Mnuchin’s position, saying that his argument was essentially illogical, and that:

‘The existing system has never been used for illegal activities, but we are going to make sure that the crypts are not used for illegal activities like the current system.”


Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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