Nine years ago when Bitcoin was introduced to the world, who knew it would become such a rage in the coming years. One bitcoin that came at a nominal price of $1 in 2011, has reached to more than $15,000 today. On a daily basis, a lot of unique users are added to the list of people already owning this cryptocurrency. This raises a concern about the increasing criminal endeavors.
People who invested in Bitcoin, surely gained benefit out of it. However, the cryptocurrencies also come with a few side effects that can’t be ignored. The global law enforcement acknowledges cryptocurrency as the play area of the criminals. Money laundering, extortion, tax evasion and contraband transactions have become too easy with the increased usage of bitcoins.
Bitcoin is considered to be anonymous, but in reality, it is not. All users can view the entire history of Bitcoin transactions. Considering this fact, criminals tend to find other anonymous cryptocurrencies to defeat the law enforcement. Criminals use “zero-proof technology” that removes any information such as amount of transaction, sender or recipient from the blockchain’s ledger. This blocks the tracing ability of blockchain and further prevents anti-money laundering efforts.In order to cope up with such criminals and their evasion techniques, law enforcement needs to become more stringent with better and advanced tools.
Anomaly detection is one such approach that can deter money laundering and other crimes like extortion and tax evasion. It is a common identification process to recognize the fraudulent or criminal behavior as that doesn’t follow the expected patterns. Wynyard Group uses anomaly detection in its Advanced Crime Analytics software that helps in preventing and solving crime.
The software is extremely helpful in preventing money laundering issues. It recognizes anomalous instances and highlights the activities that need attention. The anomaly detection feature brings out the events, behaviors and time periods that do not match with their usual pattern. The software is capable of tracking the fraudulent and preventing the crimes to occur in future.