AUSTRAC Helps Businesses Detect Criminal Use of Cryptocurrencies

Key Insights:

• AUSTRAC publishes two crypto financial crime guides. 
• The financial agency wants businesses to stop ransomware attack payments and illegal use of cryptos.
• AUSTRAC warned businesses to be watchful of raising crypto crimes.

Australia is on the news again after regulators finalized approval for Bitcoin and Ethereum ETFs on Tuesday. 

This time, AUSTRAC, the country’s financial intelligence agency, has released two new financial crime guides to help businesses distinguish between illicit activities and customers using cryptos for legitimate purposes.

Businesses Warned of Increasing Crypto Crimes

The Australian Transaction Reports and Analysis Centre (AUSTRAC) guide has warned financial service providers to be vigilant about customers with unexplained fund flows and crypto wallet addresses that show exposure to darknet marketplaces.

Nicole Rose, CEO of the government agency, noted that businesses must know to spot ransomware attack payments and the criminal abuse of digital currencies.

“Financial service providers need to be alert to the signs of criminal use of digital currencies, including their use in ransomware attacks.”

Per a press release, both the guides contain practical information and indicators to identify and report ransomware payment activities and crimes such as money laundering and terrorism financing.

Additionally, the agency has asked businesses to encourage customers to report ransomware incidents to the government cyber service. The guide noted,

“Victims are often reluctant to report an attack and simply want to regain access to their machines and data to resume business.”

The move arrives days after the Switzerland-based investment product issuer – 21Shares teamed up with ETF Securities to launch Australia’s first spot bitcoin and Ethereum ETFs.

Crypto Crimes – Increasing Threat to Australians

Although agencies are trying to keep up with changes in the digital economy, criminals in the crypto space are taking advantage of the crypto price jumps to commit crimes.

According to the government scam alert portal ScamWatch, over 10,000 scam reports were recorded last year, with losses amounting to $130 million. Additionally, Australians lost $95 million to scams in March 2022 alone. This is the greatest monthly amount on record so far.

AUSTRAC noted that,

“According to the Australian Cyber Security Centre (ACSC), 500 ransomware attacks were reported in the 2020-21 financial year, an increase of nearly 15 percent from the previous year.”

Blockchain Australia CEO Steve Vallas said that the usage of crypto for criminal purposes “has no place in our sector.”