Bitcoin Forum

Australian Crime Commission 011-12 Annual Report Chapter 3
Investigations and operations

2012-09-17


http://www.crimecommission.gov.au/sites/default/files/files/annual_reports/1112/ACC_AR_2011-2012_chapter3.pdf

(part of full report: http://www.crimecommission.gov.au/sites/default/files/files/annual_reports/1112/ACC_AR_2011-2012.pdf)

...
In focus > Understanding virtual currencies and Darknets

Cash and wire transfers are no longer
necessary for online purchases.
Virtual currencies can be used as a
substitute for the exchange of funds
between individuals, corporations
and across national borders.

For example, Bitcoin is a peer-to-peer
virtual currency that uses complex
technology to allow willing parties
to transact directly with each other
online. peer-to-peer trading means
that no central authority issues new money or tracks transactions. these tasks are
managed collectively and underwritten by the Bitcoin peer-to-peer network.

Due to the perception of anonymity that virtual currencies can provide, there is
significant potential for virtual currencies to be used for criminal purposes including
money laundering, terrorism financing, trading in illicit commodities a payment for
online services including access to child pornography.

In June 2012, we hosted a multi-agency workshop in Canberra, looking at the
emerging threats posed by criminal use of anonymous online payments systems
including Bitcoin as well as ‘Darknets’—closed private networks of computers that
can operate as online marketplaces.

the workshop was attended by 37 participants from 12 state and federal law
enforcement and regulatory agencies. It allowed, for the first time, all agencies
dealing in these potential crime areas to pool intelligence. the workshop comes as
law enforcement is examining the links between Illicit online drug Darknets such
as Silk Road, the anonymous currency Bitcoin, and the importation of drugs and
firearms via the postal system.

the workshop also provided opportunities for partner agencies to identify
intelligence gaps, scope future strategies and form partnerships to combat the
criminal use of emerging technology.

Workshops such as this are a key ACC tool to support information and strategy
sharing in the ever evolving cybercrime environment.
...

In focus > An online criminal marketplace

Drug deals that previously happened face-to-face can now be conducted online,
with the seller and the buyer never actually meeting. this provides both parties with
a perception of anonymity and safety. It also provides organised criminal networks
with the largest potential client base ever available.

one such online black market enables users to buy and sell illicit commodities such
as heroin and cocaine. It also offers pre-paid debit cards, uncut gemstones, stolen
credit card numbers and a money laundering service.

most of these online sites ship their products worldwide for a small fee and employ

a range of anonymity protecting security measures.

http://www.crimecommission.gov.au/sites/default/files/files/annual_reports/1112/ACC_AR_2011-2012_chapter3.pdf

(part of full report: http://www.crimecommission.gov.au/sites/default/files/files/annual_reports/1112/ACC_AR_2011-2012.pdf)