How money laundering has changed in the digital age

Digital Money Laundering

With the rapid advancements in mobile technology and internet accessibility, people can engage with financial institutions 24/7. In fact, 64% of Brits¹ use their smartphone for online banking. This is altering Britain into a cashless society, with a rise in demand for real-time payments and transfers, which means the opportunity for cyberattacks and money laundering is ever more prevalent.

Demonstrating how new-age technology is becoming more of a threat, in a recent landmark case a LocalBitcoins seller was charged with money laundering and is facing up to 20 years in prison. Anti-money laundering service, SmartSearchreveals new ways money laundering is taking place in the digital age.


1. Cryptocurrency


Cryptocurrencies, such as Bitcoin, can be used for a whole manner of illegal activities, not least money laundering. The same method behind traditional money laundering can be applied to digital currencies (placement, layering, integration). Although the premise of Bitcoin is founded upon blockchain technology (i.e. all transactions are recorded on a public ledger), making it possible to track all money and transactions, there are a number of ways to anonymise Bitcoin.

Most high profile cryptocurrency markets are regulated by anti-money laundering regulations, but some are unregulated and so are more susceptible to being exploited by money launderers. Other cryptocurrencies, such as Monero, are created with privacy in mind and therefore are completely untraceable.

2. Social media


With an estimated 3 billion people worldwide² using social media, it is no surprise that money laundering schemes are present on these platforms.

Money launderers can run fake money-making schemes (such as pyramid schemes) across social media and set up accounts of people showing off luxury items and cars that lure in young or impressionable people to get involved with the scheme. Money launderers will then use the recruited person to funnel money through their personal bank accounts.

Adverts offering “no risk” earnings should be closely monitored and reported appropriately.

3. Online games


Many online games have virtual currencies, and while these may seem innocuous, they can be traded and exchanged for real money to buy in-game add-ons or upgrades. Money launderers can exploit this by setting up multiple accounts and transferring the virtual currencies around to wash dirty money.

These games are often not under as great scrutiny as other more typical money laundering avenues such as banks. Look out for virtual currency sites, these reseller sites attract a large number of gamers due to the currencies marked down price, and be sure to report them.

4. Online gambling


Much like traditional money laundering through a physical casino, criminals can launder money through online betting sites in a similar way. This is typically through depositing money into an account, betting the money (known as rinsing) and often losing on purpose to make it less obvious, then withdrawing the money. This leaves a paper trail for the money as it has come from gambling, which legitimises the funds.

If a large sum of money has been deposited into an online gambling account without many bets being placed, this could be a sign of money laundering and needs to be reported.

5. Gig economy


The gig economy has boomed in recent years and with the growth, money launderers have come to exploit the system. Tactics such as ‘ghost rides’ on app-based taxi services like Uber allow money launderers to collect money through journeys that never actually take place. Individually, it can take a long time to launder significant amounts of money, but high-level launderers can build up a network of drivers, which quickly leads to larger sums.


Other tactics include offering freelance services and never actually performing the work, cleaning money in the process. By placing electronic identity verification at the beginning of the customers onboarding process, online platforms can prevent fraud.

John Dobson, CEO at SmartSearch, says: “We are now living in an ever-growing digital world where criminals are using the latest technology to exploit people’s vulnerabilities, in order to orchestrate serious crimes where they are not bound by data protection or national borders.

“We cannot use 20th-century methods to fight 21st-century crimes; only a digital-first approach will help to combat cybercrimes. We hope by sharing the new ways money laundering is taking place in the digital age, you will be more vigilant online.”

To find out more about recent money laundering cases please visit:https://www.smartsearch.com/resources/blog/biggest-fraud-and-money-laundering-cases


Bekki Barnes

With 5 years’ experience in marketing, Bekki has knowledge in both B2B and B2C marketing. Bekki has worked with a wide range of brands, including local and national organisations.

Birmingham Unveils the UK’s Best Emerging HealthTech Advances

Kosta Mavroulakis • 03rd April 2025

The National HealthTech Series hosted its latest event in Birmingham this month, showcasing innovative startups driving advanced health technology, including AI-assisted diagnostics, wearable devices and revolutionary educational tools for healthcare professionals. Health stakeholders drawn from the NHS, universities, industry and front-line patient care met with new and emerging businesses to define the future trajectory of...

Why DEIB is Imperative to Tech’s Future

Hadas Almog from AppsFlyer • 17th March 2025

We’ve been seeing Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives being cut time and time again throughout the tech industry. DEIB dedicated roles have been eliminated, employee resource groups have lost funding, and initiatives once considered crucial have been deprioritised in favour of “more immediate business needs.” The justification for these cuts is often the...

The need to eradicate platform dependence

Sue Azari • 10th March 2025

The advertising industry is undergoing a seismic shift. Connected TV (CTV), Retail Media Networks (RMNs), and omnichannel strategies are rapidly redefining how brands engage with consumers. As digital privacy regulations evolve and platform dynamics shift, advertisers must recognise a fundamental truth. You cannot build a sustainable business on borrowed ground. The recent uncertainty surrounding TikTok...

The need to clean data for effective insight

David Sheldrake • 05th March 2025

There is more data today than ever before. In fact, the total amount of data created, captured, copied, and consumed globally has now reached an incredible 149 zettabytes. The growth of the big mountain is not expected to slow down, either, with it expected to reach almost 400 zettabytes within the next three years. Whilst...

What can be done to democratize VDI?

Dennis Damen • 05th March 2025

Virtual Desktop Infrastructure (VDI) offers businesses enhanced security, scalability, and compliance, yet it remains a niche technology. One of the biggest barriers to widespread adoption is a severe talent gap. Many IT professionals lack hands-on VDI experience, as their careers begin with physical machines and increasingly shift toward cloud-based services. This shortage has created a...

Tech and Business Outlook: US Confident, European Sentiment Mixed

Viva Technology • 11th February 2025

The VivaTech Confidence Barometer, now in its second edition, reveals strong confidence among tech executives regarding the impact of emerging technologies on business competitiveness, particularly AI, which is expected to have the most significant impact in the near future. Surveying tech leaders from Europe and North America, 81% recognize their companies as competitive internationally, with...