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How cyber attackers cash out following heists: SWIFT

Published : Friday, 4 September, 2020 at 12:00 AM  Count : 211

KUALA LUMPUR/MANILA, Sept 3: SWIFT and BAE Systems Applied Intelligence today published 'Follow the Money', a new report that describes the complex web of money mules, front companies and cryptocurrencies that criminals use to siphon funds from the financial system after a cyber-attack.
Belgium-based SWIFT (The Society for Worldwide Interbank Financial Telecommunication) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.
The United Kingdom-based BAE Systems Applied Intelligence is an international business and technology consulting firm owned by BAE Systems.
The report highlights the ingenuity of money laundering tactics to obtain liquid financial assets and avoid any subsequent tracing of the funds.
For instance, cyber criminals often recruit unsuspecting job seekers to serve as money mules that extract funds by placing legitimate sounding job advertisements, complete with references to the organisation's diversity and inclusion commitments.
They use insiders at financial institutions to evade or undermine the scrutiny of compliance teams carrying out know-your-customer (KYC) and due diligence checks on new account openings.
And they convert stolen funds into assets such as property and jewellery which are likely to hold their value and less likely to attract the attention of law enforcement.
SWIFT commissioned BAE Systems to investigate this element of the money laundering process as part of its Customer Security Programme (CSP).
The CSP continually helps the financial community to strengthen its cyber defences through a range of measures including mandatory controls, intelligence sharing and thought leadership.
Although there has been much research into the methods that cyber criminals use to conduct attacks, there has been less investigation into what happens to funds once they have been stolen.
The aim of this report is to illuminate the techniques used by cyber criminals to 'cash out' so that SWIFT's global community of over 11,000 financial institutions, market infrastructures and corporates can better protect themselves.
Brett Lancaster, Head of the Customer Security Programme at SWIFT said: "The threat posed by cyber-attacks to the financial sector has never been greater. Attackers are well-resourced, constantly evolving their modus operandi and using untraceable money laundering techniques.
"The report highlights how the growth in cyber-attacks is increasing the need for the convergence of anti-money laundering, fraud and cybersecurity processes in financial institutions. It calls for them to increase information sharing, tighten due diligence requirements and smartly invest in maintaining systems to strengthen their defences."
Simon Viney, Cyber Security Financial Services Sector Lead at BAE Systems Applied Intelligence said: "The activity from cyber criminals and gangs across the world is estimated to result in over $1.5 trillion dollars in annual losses.
   -Media OutReach








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