Europol Reports Increase in Crypto Crimes, Targeting Both Bitcoin and Altcoins Equally

• Europol reports a significant rise in crypto crimes, with Bitcoin and altcoins being equally used in illegal activities.
• Ransomware attackers prefer Bitcoin, but Monero demands are rising, signalling diversification in crypto criminal preferences.
• Crypto laundering via swapping services and investment fraud using stablecoins like Tether on Tron are growing concerns.

Criminal activities with cryptocurrencies have increased as pointed out by Europol’s Internet Organised Crime Threat Assessment (IOCTA). However, the group noted that they resembled other cryptocurrencies and the frequency of incidents involving the same is just as high. This leads to the conclusion that more people are now using bitcoins in criminal activities.

The organization stressed that because Bitcoin is easily accessible, ransomware offenders favour it for extortion payments. Demands have been noted, nevertheless, for other cryptocurrencies, such as Monero. This change indicates that criminals’ tastes for

New Threats from Crypto Market Developments

Moreover, Europol raised concerns over crypto market developments that could facilitate criminal exploitation. Specifically, the rise in crypto-related exchange-traded funds (ETFs) might be leveraged by scammers. This potential misuse underscores the need for vigilant monitoring of market trends.

Furthermore, an increasing pattern of investment fraud incidents has been observed. Because stablecoins like Tether (USDT) have consistent prices, criminals are switching from Bitcoin to them more and more. Compared to Ethereum, Tether was more common on the Tron blockchain, according to Europol. Tron’s reduced transaction fees are probably what motivates this preference.

In 2023, crypto laundering through swapping services saw an increase. Criminals use these services to conceal their funds by swapping to privacy coins for anonymity and stablecoins for stability. This method complicates investigations and poses challenges for law enforcement.

Evolving Cybercrime Tactics and the Role of AI

Non-compliant services based in offshore jurisdictions further hinder crypto investigations. These services prolong mutual legal assistance procedures, making cooperation with law enforcement difficult. This lack of compliance continues to be a major obstacle in tackling crypto crimes effectively.

Last month, Europol highlighted the potential of crypto mining for money laundering. Criminals could use mining to hide ill-gotten gains and even turn a profit. The BitClub Network case exemplified how mining pools could be misused in Ponzi schemes, defrauding victims of hundreds of millions of euros.

Europol also noted an evolution in cybercrime tactics, with multi-layered extortion schemes becoming more common. Stolen data risks being published or auctioned, leading to potential re-victimization. Furthermore, the involvement of underage offenders in cybercrime is alarming. Some of these young criminals already leverage artificial intelligence (AI) tools.

AI-assisted cybercrime is expected to pose growing challenges, especially concerning child sexual abuse material (CSAM). AI-altered and completely artificial CSAM will complicate investigations, making it harder to identify victims and perpetrators.

A report from Finance Magnates in April indicated that nearly 50% of companies are targeted by AI-generated deepfakes. The payment, money transfer, and personal banking sectors are particularly vulnerable. As scammers increasingly utilize AI for malicious purposes, companies like Mastercard are employing this technology to protect consumers from fraud.