How Hackers Hide Their Stolen Money?

In the world of digital transactions, it is surprising that hackers are still able to hide their illegally-earned money

We often get to hear news stories about hackers targeting individuals or organizations and stealing their money. It can be done via methods such as gaining unauthorized access to bank accounts or demanding ransom. While such tricks are themselves surprising, what is even more perplexing is the ability of hackers to hide their stash. How do hackers manage to hide their money? To understand that, let us take a look at various methods hackers use to hide their loot.

Cryptocurrency – This is one of the preferred methods used by hackers to hide their stolen money. That is because of the decentralized structure of cryptocurrency and their pseudo-anonymous nature. Cryptocurrencies that are especially designed for privacy can be preferred for such activities.

Crypto mixers/tumblers – These services are often used by hackers to hide the stolen money. Crypto mixers or tumblers are used to hide the source and destination of the cryptocurrency. This is done by mixing the stolen funds with other funds that may be legit. Crypto mixers/tumblers were created to address privacy concerns. However, recent cases reveal a pattern of misuse by hackers. A relevant example is the North Korean hacking group known as the Lazarus Group. It is known to use crypto mixers/tumblers to launder their money.

Gift cards / Prepaid cards – Stolen money is used to purchase gift cards or prepaid cards from popular platforms such as Amazon, iTunes, Visa gift cards, etc. These are then sold, probably at a discounted price on the dark web. A relevant example is the REvil ransomware gang that supposedly used this method.

Offshore bank accounts / Shell companies – Hackers use locations that offer tax incentives or do not question the source of money. Locations without proper tax regulations are also preferred. Hackers can create fake businesses at these locations to hide or launder their looted money. Some examples include locations like Cayman Islands, British Virgin Islands, etc.

Online casino – These platforms are unlikely to ask you about the source of your funds. Hackers use online casinos and gambling platforms to launder their money. One relevant example is the Carbanak cybercriminal group that supposedly used online casinos to launder millions stolen from bank accounts.

Dark web and peer-to-peer transactions – Various illegal entities operate on the dark web that can launder money for hackers. These services are offered for a commission.

Real estate and luxury goods – While digitization has increased, cash is still widely used. With the stolen money, hackers can invest in real estate and luxury goods. These can later be sold to make the money from black to white. There have been multiple cases where the FBI has seized properties purchased with stolen money.

As is evident, hackers have several options to hide and launder the looted money. However, enforcement agencies are always hunting for them. And sooner or later, the bad guys get caught. Always remember the quote – “Crime might give you a head start, but it never lets you finish the race.”