Emerging threats: financial crime in the virtual world

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to highlight emerging threats in cyberspace, with particular reference to financial crime in the virtual world, which have real life implications, as well as to recommend ways in which the threat may be mitigated. Design/methodology/approach -The methodology adopted consisted of an extensive literature review on topics to include cyber crime, virtual worlds, and financial crime. Findings -Virtual worlds such as Second Life play a key role in supporting real world activities such as education, training and business and as such, should not be dismissed purely as a "gaming" environment. In addition, emerging technologies coupled with the lack of legislation and regulation within virtual worlds has created an environment where a variety of crimes can be committed without fear of detection or prosecution. A further concern is its use by criminals as a vehicle to mask real life crimes such as fraud, identify theft and money laundering. The question is to what extent the blurring of the virtual and real life environments can be clarified in order to minimise the risk of abuse of virtual environments by criminal elements, which have direct consequences in the real world. Originality/value -This paper serves as a useful guide to alert and educate security professionals, the judiciary, law enforcement and policy makers of the significance and the extent of the use of "virtual" environments in cyberspace for criminal means, such as fraud and money laundering. Findings are supported by a conclusion which includes recommendations for tackling these issues.

The impact of national culture on financial crime

“…Another consideration in the examination of financial crime is the increasing interaction between financial crime and cybercrime (Keene, 2011). Though "traditional" financial crimes continue to occur, technological innovations and globalization mean that the business world has become increasingly digital, and financial crime continues to accommodate the latest technologies.…”

“…It can also be seen in the gap between the technological capabilities of those committing financial crimes and those who investigate and prosecute it. According to Keene (2011), the absence of effective legislation can be attributed to the inability of lawmakers to effectively keep up with the innovative technologies that facilitate financial cybercrime. Those who are committing financial crimes are constantly finding ways to adopt technology to their illicit purposes (Keene, 2011).…”

“…According to Keene (2011), the absence of effective legislation can be attributed to the inability of lawmakers to effectively keep up with the innovative technologies that facilitate financial cybercrime. Those who are committing financial crimes are constantly finding ways to adopt technology to their illicit purposes (Keene, 2011). Even elements of technology that are not typically used for financial crime are now being changed or used to commit financial crimes.…”

Money laundering and terrorism financing in virtual environments: a feasibility study

“…Concern is growing about the ease in which massively multiplayer online games (MMOGs)[1] may be used for economic crimes such as money laundering, fraud and terrorism financing (Methenitis, 2009;Sanders, 2009;Sullivan, 2008;Vallance, 2008;Tefft, 2007;World-check, 2007;Castranova, 2005). Many believe that potential and opportunity exist for allowing large sums of money to be moved across national borders without restriction and with little risk of detection (Pearce, 2012;Keene, 2011;Tsuruoka, 2011;BBC, 2008;Heeks, 2008;Leapman, 2007;Lee, 2005). The ease in which money launderers and/or terrorists have turned to virtual environments and digital currencies, when traditional avenues of funding are restricted or lost, has become problematic for governments (e.g.…”

Virtual world financial crime: legally flawed

“…1 It is a crime which is committed within or on, the internet. 2 It can encompass a multitude of crimes including, for example, identify theft, 3 trademark infringement, 4 cyber bullying, 5 fi nancial crime, 6 hacking 7 and terrorist fi nancing. 8 Therefore, an all-encompassing defi nition is diffi cult to locate because a crime can take place on the internet or it can take place within a virtual world, 9 a social networking site 10 or a microblogging platform such as twitter.…”