Scotland has been hit by a 2000% surge in cryptocurrency offences amid an “industrial scale” explosion of crime on the dark web.
Police Scotland is battling a new frontier of criminality and say that tech savvy organised crime gangs are increasingly leveraging cryptocurrency for drug trafficking, gambling, money laundering, human and wildlife trafficking as well as violent crime.
The force says fleet-footed gangsters are “quick to adapt” and latch on to new methods of obscuring their activities with cryptocurrency being one of their preferred methods of evading detection.
Police Scotland say that in response to “one of our biggest threats to our communities” they too are adapting capabilities and tactics as part of the fightback against cyber criminals.
A force report says: “Since 2019, Police Scotland has experienced a circa 2000% increase in cryptocurrency related criminality.
“As technology evolves, serious and organised crime groups are quick to adapt and utilise new methods to help obfuscate their activities with the use of cryptocurrency being one such method.
“Police Scotland currently have made significant strides forward in terms of capability and now have two track and trace tools aligning them with much of UK and leading international law enforcement.
“Police Scotland’s proposed Cyber and Fraud Command will allow for a refresh of organisational approach and responsibilities in relation to cryptocurrency.”
According to the report, there were 58 enquiries or operations investigated by Serious and Organised Crime Financial Investigation Unit SOCFIU last year with a total value of crime recorded as £188,821,353.
It says: “In relation to these investigations, there have been 153 suspects investigated, 34 warrants executed, 55 persons arrested and £7,655,951 of recoveries/items seized.
“The department supports a variety of Divisions and departments to exploit all Proceeds of Crime Act (POCA) opportunities and identify Money Laundering investigations for designation.
“In relation to these investigations, there have been 153 suspects investigated, 34 warrants executed, 55 persons arrested and £7,655,951 of recoveries/items seized.”
One enquiry regarding cryptocurrency was referred to civil recovery via an expedited referral relating to over $40 million of cryptocurrency found on USB devices.
While most cyber and fraud crime is carried out via the ‘surface web’ the dark web is a hidden part of the internet accessible only through specific software offering anonymity providing the perfect environment for an array of illicit activities.
It cannot be reached by standard search engines and is used for weapons trading, trafficking, selling stolen data, fake IDs and passports, malware and hacking tools as well as stolen social security numbers.
The force report says: “As a result, the dark web has become easily accessible for today’s criminals to arrange the supply of commodities – controlled drugs, counterfeits, firearms, data – commit acts associated to human trafficking and be a method for facilitating other crimes, such as extortion, fraud, ransomware attacks and live streaming of sexual abuse.
“Police Scotland are seeking to increase our presence on the dark web and enhance our investigative ability. This will enable us to proactively deploy specialists to enable a greater assessment and understanding of the threat to our communities.”
Police Scotland officers have received training with a view to obtaining dark web tools and threat intelligence software to bring Scotland in line with the rest of UK Law Enforcement.
The report says dark web intelligence development has been brought under Cybercrime Investigations who engage UK wide with the Dark Web Intelligence, Collection and Exploitation (DICE) network.
Cryptocurrency exists solely in digital form unlike traditional currencies which have physical forms like banknotes and coins.
Bitcoin is the most well-known cryptocurrency, but many others exist, often referred to as “altcoins”.
Crypto money laundering involves concealing illegally obtained funds by funnelling them through cryptocurrency transactions to obscure their origin
Assistant Chief Constable Stuart Houston said: “As an organisation, we are continuing to transform our service in how we respond to the evolving threat of cybercrime.
“We are delivering on this commitment through investment in our officers and staff, on the frontline and in specialist roles, so that they have the confidence, training, skills, tools and support to meet these new challenges.
“Police Scotland continue to recognise and respond to online crime, which keeps evolving, being one of our biggest threats to our communities.”
