Protect Your Company Against Virtual Currency Fraud

  • Internet Fraud

There used to be question of how much gold, silver and jewels might be worth, but in todays digital world, a virtual peer-to-peer currency has taken charge. The outcome of which leaves us strongly questioning how much value this virtual currency actually carries. The most popular example of this currency is BitCoin. Launched in 2009, the currency has been a highly controversial commodity with massive, recent crashes and multiple security concerns. Over a short period of time the value of BitCoins has soared and has become very attractive to fraudsters and money launderers.

Virtual currency and digital wallet technology is highly anonymous and similar to online banking. BitCoins are useful but limited. And they can be repurposed to facilitate criminal acts and launder illicit proceeds with little tracking of whos doing it. The crime happens when victims accounts are hacked or fake coins are cashed out. This can take seconds with advanced fraudsters.

Anti-money laundering professionals are in a constant state of monitoring and educating with the advances in technologies and fraud activity. But they cant do it alone. Financial institutions need to be aware of this fraudulent activity as well. This can be difficult because of limited budgets for fraud prevention services & systems and money laundering solutions. These limited budgets prevent updates to information sharing processes and systems. Out-of-date systems and equipment raise the level of risks and losses. Implementing fraud prevention solutions can assist in the regulation of money laundering and the protection of your company. Through id verification and authentication there can start to be a standard for virtual peer-to-peer exchange.

[Contributed by EVS Marketing]