SAN FRANCISCO, March 16 (Xinhua) -- Cybercriminals launder up to 200 billion U.S. dollars, or about eight to 10 percent of total illegal profits from cybercrime globally every year, a California-based online security firm said Friday.
Bromium Inc., a pioneer cybersecurity firm using virtualization-based security technology and headquartered in Cupertino in northern California, said in its latest study that virtual currencies have become the primary tool used by cybercriminals for money laundering.
Cybercriminals are moving away from Bitcoin to less recognized but more anonymous virtual currencies, like Monero, an open-source cryptocurrency created in 2014 that focuses on privacy and decentralization and runs on major computer systems such as Windows, macOS and Linux, as well as the mobile system of Android, it said.
Bromium said many cybercriminals are using virtual currency to make property purchase that convert illegal proceeds into legitimate cash and assets.
Nearly 25 percent of total property sales are predicted to be conducted in cryptocurrency in the next few years, which may disrupt global property markets.
Such properties purchased with cryptocurrency are not closely scrutinized because cryptocurrencies aren't regulated by any central banks or governments, said Bromium in its nine-month study conducted by University of Surrey in Britain.
Mike McGuire, author of the study, said gaming currencies and items that can be easily converted and moved across borders offer an attractive prospect to cybercriminals.
An estimated 10 percent of cybercriminals are using popular PayPal to launder money, and a further 35 percent use other digital payment systems, including Skrill, Dwoll, Zoom, and mobile payment systems like M-Pesa, according to the study.
The growing use of digital payment systems by cybercriminals is creating significant problems for the global financial system, as digital payment systems, combined with virtual currencies and online banking, hides the money trail and confuses law enforcement and financial regulators, McGuire said.