According to a jaw-dropping new report from McAfee, online gambling continues to fuel the cybercrime industry.
“Perhaps the rise of criminal activities within online gambling should not be a surprise, nor should their popularity,” reads the new whitepaper titled “Jackpot! Money Laundering Through Online Gambling.”
From the onset of online gambling in the mid-1990s, the report authors explain, its growth has been nothing short of staggering, and it is forecasted to continue growing. The increase in online revenues appears to compensate for the decline in physical site–based revenues.
Why, in particular, are online gambling sites so appealing to money launderers? There are three reasons, say McAfee.
- Gambling involves a huge volume of transactions and cash flows, which are necessary to disguise money laundering.
- Gambling does not involve a physical product (such as paper currency), making it much more complicated to track the flow of money and prove real vs. virtual turnover.
- Gambling winnings are tax free in many jurisdictions
To learn more about the new report, check out the whitepaper in full here.
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