2011 hk fyodor-anthony_ppt

Agenda
3rd Annual Enhanced AML/CTF Tools & Techniques-Singapore
Techniques- Hong Kong

Electronic Payments in Online
Crime
Preparing for the Global Growth of Electronic
Payments and their Impact on Financial
Institutions
Anthony Lai &
Yarochkin Fyodor
17 October 2011
ACAMS Asia-Pacific Live Seminar Series

Agenda
3rd Annual Enhanced AML/CTF Tools & Techniques- Hong Kong

• Electronic payment systems:
case studies
• “red flag” criminal activities
• Discussion:
– Regulatory requirements regarding electronic payment transactions
– New tools and best practices to enhance AML/CTF control in addressing these payments
– Strengthening your AML program to monitor these payment vehicles - Enhanced
ACAMS Full Day Seminar
AML/CTF Tools & Techniques


We are cybecrime experts, so....

• What will you learn here:

– Exposure to real cases and examples of “red flag” activities
– Channels and patterns

ACAMS Full Day Seminar - Enhanced
AML/CTF Tools & Techniques 3


You probably know about “HAWALA”

Hawala (also known as hundi) is an informal value transfer system
based on the performance and honour of a huge network of money
brokers



Many of electronic payment systems are following the HAWALA principle
And built on the top of similar infrastructure

Now backed by digital inftastructure

No traces in banking network

Money disappear in one place, pop up in another



• Lets look at some examples

There is more than one way to transfer money

6

3rd Annual Enhanced AML/CTF Tools & Techniques-Hong Kong

• Of course you know paypal and other “white” payment electronic systems. They are simple, and uninteresting

7


• Controlled by regulatory acts. (http://www.ffiec.gov/PDF/EFS.pdf)

• Similar to conventional payment systems (not much space for anonymized fraud :-))

8

Getting to know “Underground” money systems

• WMZ - web money - one wmz =
one USD
• Drop - money mule
• CC - creditcards
• Abuse resistant - Safe to host any
kind of fraudulent service
• Partnerka - partnership program
9


• There are many:
Where is webmoney office in Thailand?

• Web Money (WMZ)
• Yandex Money
• LR (liberty reserve
• Epassporte (dead!)
Pataya!! Where gangsters are ;-)

10


• Credit card “dumps” websites, work only with “trusted” systems. Why?

AlertPay, SMS, LiqPay

11


• They feature “awesome” geographical locations

12

• As with real currency, exchange points exist. Percent charged:

13


• WMZ - widely used on black markets

14


• Credit cards: easily available and covertable into non-traceable currency

15


• Such data is also on sale (note LR -> Liberty Reserve payment system)

16


• “cleaning” dirty cash - services available

Accepting dirty cash. 40% fee
Ie 100 of dirty units, u get 60 clean back.
Payment in alfabank, or yandex money

17


• Done through money mules:

18


• FBI arrests last year

19


• Another way of “cleansing” cash through sale of charged skype accounts. Exchange rate is 1 to 2.5

20


• Similar method in china. Conversion through online goods.

21

• Passport scans sale: big market for the same reason

4-5USD/scan avg
.eu, .ru, .us, asian
One-hand sales
Also offered - scan “redraw”
Special prices for bulk
22


• So “cleansing” packages could be arranged

23


• Explanation:

Под средства любой загрязненности! For money of any state of dirtiness
В комплект входит: Pack includes
1.Банковскийакк(online доступ Online bank account access
)
2.АТМ картa(Дневнойлимитна снятиесредств1000$/6000$ В МЕСЯЦ-Возможноувеличение
лимита+30$-)
ATM card (1000/6000USD per month withdrawal limit)
3.Картакодов (для online доступа online access passwords
)
4.Копия паспортадропаPassport copy of “poor john”
5.Sim-ka SIM card

Also can be pre-ordered on custom passport scan
(25USD)

24


• Other monetizations: SMS

25


• SMS in. Money out

26


• This year, going international, utilizing localized payment systems:



• Spanish version

28


• Very “international” operations.
Registration Service Provided By: Bizcn.com
Website: http://www.cnobin.com person:
person: Ionut Tripa
Ionut Tripa
Whois Server: whois.bizcn.com remarks:
remarks: SC GoldenIdeas SRL
SC GoldenIdeas SRL
address:
address: Str. Drumul Sarii, nr. 57C
Str. Drumul Sarii, nr. 57C
Domain name: bundespol.net address:
address: Sector 6, Bucuresti
Sector 6, Bucuresti
phone:
phone: +0744885334
+0744885334
abuse-mailbox:
abuse-mailbox:
Registrant Contact: goldenideas.ionut@yahoo.com
goldenideas.ionut@yahoo.com
Whois Privacy Protection Service nic-hdl:
nic-hdl: IT1737-RIPE
IT1737-RIPE
Whois Agent gmvjcxkxhs@whoisservices.cn source:
source: RIPE # Filtered
RIPE # Filtered
+86.05922577888 fax: +86.05922577111 mnt-by:
mnt-by: GOLDENIDEAS-MNT
GOLDENIDEAS-MNT
No. 61 Wanghai Road, Xiamen Software Park
xiamen fujian 361008
cn

29


Discussion
– Regulatory requirements regarding electronic
payment transactions
– New tools and best practices to enhance
AML/CTF control in addressing these
payments
– Strengthening your AML program


3rd Annual Enhanced AML/CTF Tools & Techniques-Singapore

Questions?


2011 hk fyodor-anthony_ppt

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