PETALING JAYA: Anonymity, speed and global accessibility are some of the reasons why cybercriminals prefer to demand ransom to be paid in cryptocurrency, say criminologists.
Financial forensics expert Raymon Ram said unlike traditional financial systems, cryptocurrency transactions can occur without intermediaries.
“The irreversible nature of these transactions ensures that once the ransom is paid, victims cannot recover the funds, offering criminals a level of security,” he added.
Raymon also said that by using digital currency, criminals such as kidnappers could easily launder the ransom money by leveraging on the pseudo-anonymity and decentralised nature of cryptocurrency systems.
“After receiving the ransom, typically in popular cryptocurrencies like Bitcoin or stablecoins like USDT, criminals often employ tactics such as mixing services and chain-hopping.
“Mixing services obscure the transaction trail by blending the ransom with other funds, while chain-hopping involves converting the cryptocurrency across different platforms and coins, making it harder to trace.”
Raymon said enforcing strict identity verification and transaction monitoring can make it harder for criminals to launder their illicit gains.
Criminologist Datuk Seri Dr Akhbar Satar agreed, saying that using cryptocurrency as ransom has been some criminals’ modus operandi as it would be harder for authorities to trace them.
Akhbar, who is also Malaysian Association of Certified Fraud Examiners president, said that the recently gazetted Cyber Security Act 2024 would also help in enhancing resilience against emerging threats involving cryptocurrency.
