Halting Cybercrime Requires Cutting Off Easy Money

270_lrThe crackdown on Liberty Reserve underscores the danger posed by anonymous money transfers using virtual or digital currencies — a facet of cybercrime increasingly under scrutiny by law enforcement

The successful compromise of an employee’s or consumer’s computer is only the start of an online crime. Without the ability to move money from the victim’s account to the attacker’s accounts through intermediaries, most cybercriminals would be stymied.

The shutdown of the Liberty Reserve money transfer service and the arrest last week of its two founders and three other employees on charges of money laundering highlight the role that digital currencies have in the cybercrime food chain. Incorporated in Costa Rica, Liberty Reserve had more than 1 million customers worldwide and processed more than $6 billion in transfers, much of which came from the proceeds of credit-card fraud, computer hacking, identity theft, and other cybercrimes, according to a statement published this week by the U.S. Attorney’s Office for the Southern District of New York.    Read the entire Article >>

Source: DarkReading.com | by: Robert Lemos