Money laundering: a battle between innovation and security?

On the website Bank Info Security Tracy Kitten reports on an interview with H. Jones, an anti-money launder expert. This topic is highly interesting for spam, malware and cyber crime enforcers, as they use all sorts of forms of money laundering.

New services, smooth laundering
The gist is that new applications and services make it easier to send money into other jurisdictions, but harder to comply to regulations or check what it is that is actually being sent. Also mobile to mobile payments is a totally new service where checks still fail. What the answer of the banking community and regulators is going to be, is unclear.

The “battle” between innovation and security
What appears to be happening, in my opinion, is the ever lasting “battle” between the technical community who are great innovators and always try to come up with better applications, in line with companies that want to have the highest and easiest (cheapest?) service level possible for their costumers. On the other hand there’s the necessity to have a higher level of security and checks against abuse of named services. Law enforcement agencies need to be able to establish what has happened and find the evidence to present in court against the crimes committed. Usually the two sides do not go together well. Security seems to be more of an afterthought than a priority where innovation is concerned.

Innovation drives the modern world, but it might be a good idea to have the two worlds meet somewhere in between before a new service is launched. E.g. (Build in) fraud prevention and detection techniques would make it harder for the cyber criminal to act. In the end it may be a lot cheaper too!

Australian banks active against cyber crime
In another interview AusCerts Graham Ingram reports on the lead Australian banks have taken against cyber crime. Maybe an example for other countries?

Wout de Natris

Leiderdorp, 9 February 2011


About Wout de Natris

As a consultant I specialise in establishing new and different relationships between industry, governments and law enforcement where internet safety and the fight against cyber crime are concerned. This makes me a bridge builder. Hence the blogs name. In this blog I intend to stress the need for interaction, cooperation and exchange of information in order to change the mentioned relationships. On offer: a comprehensive training on all non-technical aspects of spam enforcement and a cyber awareness presentation for companies and institutions
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