Why Do Criminals Use Monero?

Criminals currently use various cryptocurrencies to carry out transactions and launder money. Of course, this is illegal, but because many regulatory bodies still don't fully understand how cryptocurrencies work, enforcement is very difficult. Cryptocurrencies are a decentralized means of payment, meaning there is no central authority setting rules for users (in terms of money laundering). In this blog, we take a closer look at a popular cryptocurrency, namely Monero. If you'd like to first get acquainted with the topic, we recommend reading our blog "Hackers and cryptocurrency" first.

What is Monero?

Monero is a cryptocurrency that stands out and is therefore extremely popular among cybercriminals. Cryptocurrencies such as Bitcoin or Ethereum have a transparent blockchain. This transparency allows the world to track all incoming and outgoing transactions. We always compare this to a transparent bank account — you can see the incoming and outgoing transactions to that specific bank account number. If you do the math on this, you know the value of the cryptocurrencies held at that specific account number (wallet).

Monero stands out by using a form of cryptography. This cryptography ensures that the sending and receiving addresses are not visible. This makes it impossible — or very difficult — to track incoming and outgoing Monero transactions.

Why do criminals use Monero?

Monero is a decentralized digital means of payment, meaning there is no central authority overseeing transactions. This makes it much harder for governments or other entities to trace the identity of the user behind the transactions. Because of its use of cryptography, transactions are much harder to trace than with other cryptocurrencies. This makes it a very appealing cryptocurrency for criminals.

How Monero works

Monero offers users a higher degree of privacy than other cryptocurrencies. How does it work technically? Monero uses a technology called Ring Confidential Transactions (RingCT), which keeps transaction data hidden from everyone except the user. This means hackers can not only make their financial transactions anonymous, but also be confident that their transactions are secure.

Monero security

Monero is one of the safest cryptocurrencies available. It uses a unique technology called CryptoNote, which means it is better protected against brute-force attacks. This means hackers can carry out their transactions without fear of their money or personal data being stolen.

Crypto & crime

Tozetta's partner, CryptoCrimeTraining, provides training on crypto and crime. Curious how criminals abuse cryptocurrencies for their criminal activities? Be sure to check out their website. The training is particularly interesting for KYC, CDD, and AML analysts working at, among others, banks. Of course, everyone else interested is welcome too!

Want to follow more training courses? Then consider one of our Cyber Security Awareness Trainings to make yourself and your employees more aware of the risks of cyberattacks, how to recognize them, and how to prevent them.