Reported by Ray Fernandez

(Click link all the way down below for full report)

Blockchain Bridges, Droppers, and Neural Network Forgeries

Deniss Kudrjašov, AML Compliance Officer at the neobank Keytom, spoke to Techopedia about the tactics and technologies used by cyber criminals to clean dirty money.

“Recently, combined laundering systems that utilize both centralized and decentralized finance (CeFi and DeFi) have become more prevalent. The introduction of ‘bridges’ in DeFi is what facilitated this trend, allowing the seamless transfer of assets between different blockchain networks.”

Kudrjašov added that money laundering chains are also now incorporating NFT collections. “Typically, these involve obscure collections that gained traction during the NFT hype, where their value could soar to tens or hundreds of thousands of dollars,” Kudrjašov said.

According to Kudrjašov, money laundering schemes are also increasing the use of ‘droppers’ — individuals who facilitate the withdrawal of laundered money.

Additionally, new tech, such as the forgery of documents using AI neural networks, worries experts. While neural network technology is also being used to detect fake signatures and documents, criminals use these tools to bypass Know Your Customer (KYC) protocols.

“In certain cases, the market has also seen cryptocurrency exchange platforms that sometimes turned a blind eye to suspicious transactions, suggesting potential collusion with the launderers.”

Read full report: https://www.techopedia.com/modern-money-laundering-top-trends-and-tech