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Why Gift Cards? The Emergence of a new cash out method for Cyber crimes

Submitted by admin on Wed, 08/19/2020 - 21:16

The hardest part of any financially motivated cybercrime is the cash out. 

The strategy for cashing out for cyber criminals needs to be easy enough to make it worthwhile and safe enough to stay under the radar of the both the financial institutions involved or law enforcement agents. 

With the level of increased scrutiny on financial transactions carried out on bank accounts and further identification of numerous accounts tied to a single individual via the use of a Bank Identification Number (BVN), which is geared towards identifying and stopping or significantly reducing Bank / Credit card fraud - Cyber criminals are gradually diversifying their methods for cashing out.

These methods includes the use of anonymous means of receiving money such as Cryptocurrencies and also the use the use of E-payment systems which are not regulated by the Government such as Perfect money etc., 

Understanding the lifecycle of a financially motivated cybercrime is an important part of successfully and efficiently defending against them. 

It is therefore important to NOTE the following:

  • In online shopping, it is highly risky to buy products or services from a merchant who only accepts Cryptocurrency such as Bitcoin, Etherum Etc, or other E-payment such as Perfectmoney as it is impossible to recover your money if / when things go wrong.
  • Be careful of investment sites and social media handles who offer extremely high yielding investment offers through Bitcoin or Giftcards.

In the past year or two, there has been a steady rise in the emergence of online merchants ready to purchase Gift cards from people – as their adverts are seen flying everywhere on the internet . Although this is not illegal in itself, but some questions needs to be asked.

Questions such as the source of the Gift Cards offered for sale, the online or offline merchant should also provide KYC Forms where customers can fill in their details and wait for verification before business can be conducted; that way the level of opacity in such transaction will be greatly reduced.

When we have insight into the tools, techniques, procedures, motivations, methods, and ecosystems driving Cybercrimes, we are hence afforded the opportunity to build a strong defense against them.

 

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