What Is Behind the Increase in Crypto Fraud?Experian's David Britton on Connection Between Benefits Programs, Crypto Fraud
There has been a rise in crypto fraud, and a substantial portion of it can be attributed to stimulus funding and paycheck protection programs, says David Britton, vice president of strategy, global ID and fraud at Experian.
Cryptocurrencies often make it easier for criminals to obscure the source of criminal proceeds and move the illegal funds across borders without detection. Recent reports suggest that the use of cryptocurrencies for money laundering is rapidly gaining acceptance worldwide.
"Things like stimulus funding and paycheck protection programs presented a lot of opportunities to gain access to funds for the criminal community as well as the legitimate community, and the fraudsters took full advantage of this by setting up false accounts and false applications," Britton says.
"The challenge was: Once they had those funds, they had to think of ways to leverage the money. Therefore, a number of new fraudulent accounts were created for the purpose of moving funds, and crypto became another tool."
In a video interview with Information Security Media Group, Britton also discusses:
- How stimulus programs contributed to crypto fraud;
- New authentication methods to mitigate new account opening fraud;
- Whether stricter regulations can curb crypto fraud.
Britton is the vice president of strategy, global ID and fraud at Experian. As an early internet fraud investigator, he played a role in the development of fraud prevention technologies.