The Australian Center for Accounting and Analysis of Financial Transactions (AUSTRAC) reported that with the development of the digital asset industry, cases of their use for illegal purposes have become more frequent.
“Cybercrime is a growing threat to Australians. According to the Australian Cyber Security Center (ACSC), 500 ransomware attacks were reported in fiscal year 2020-2021, up almost 15% from the previous year,” the report says.
The report was published just after the regulator issued two new guidelines that should help organizations determine when customers are using cryptocurrencies for illegal purposes, or when they are forced to pay ransomware operators. At the same time, AUSTRAC warned that debanking customers simply on suspicion of such activity is a harmful practice with serious negative consequences for the Australian economy.
In its ransomware guide, AUSTRAC highlighted several signs that a client is trying to pay a ransom. The list included behaviors such as showing impatience with the speed of transactions, sudden large transactions from new ventures, and transfers of all assets to cryptocurrencies. AUSTRAC noted that most “victims are often reluctant to report extortion to law enforcement” as they seek to quietly save their business and resume operations without downtime as much as possible.
“Whenever possible, encourage your customers to report ransomware incidents to ACSC ReportCyber and law enforcement,” the regulator wrote.
In a guide to the illegal use of cryptocurrencies, AUSTRAC listed activities such as tax evasion, money laundering, fraud, and buying illegal products on the dark web. The regulator paid the most attention to money laundering, presenting a summary of its key components, which include “placement, layering and integration.”
Despite the gradual tightening of regulation of the crypto industry, Australia remains loyal to digital assets. In early April, the Australian Prudential Regulatory Authority (APRA) stated that despite its oversight functions, the agency would not restrict the development of the crypto industry.
