Fraud, Mixers, Ransomware And The Darknet: Cryptocurrency Threats Continue

The FBI recently released a bulletin warning financial institutions and investors about a new cryptocurrency fraud scheme. According to the statement, cybercriminals have been using the names, logos and identifying information of legitimate investment firms to create fake mobile apps and websites in an effort to lure and defraud potential investors. The FBI cautions institutions and investors alike to be vigilant and verify any application before downloading it and providing sensitive information.

According to a recent Chainalysis blog post, use by illicit entities of cryptocurrency mixers – applications that obscure the flow of funds and complicate the tracing of cryptocurrency transactions – is at an all-time high. While mixers operating in the U.S. are required to register with FinCEN as money transmitters, few do, according to Chainalysis, and their lack of KYC processes makes them attractive to criminals looking to launder money.