“Transaction Laundering and the Facilitation of Cybercrime Through the Online Payment Ecosystem”
As e-commerce continues to expand, credit card transactions have increasingly become a conduit for money laundering. This presentation will highlight how criminal organizations circumvent the payments and banking ecosystem’s risk and compliance controls by setting up fake online businesses and storefronts to covertly process payments for illegal activity. This practice, known as transaction laundering, can be challenging to detect when done proficiently. The presenters will share their research on transaction laundering typologies, including the ways in which launderers hedge their risk and alter strategies over time. The presentation will also review the advantages and limitations of detection methods such as business model risk analysis and internet infrastructure mapping.