24 September 2024
How do Ivorian Cyberfraudsters Manage Their Criminal Proceeds?
How Ivorian Cyberfraudsters Manage Their Criminal Proceeds: Insights from Recent Research
Introduction
Cyberfraud has become a significant criminal activity worldwide, impacting individuals and economies alike. West African countries, including Côte d’Ivoire, have become notable hotspots for cybercriminal activity, especially scams such as romance fraud and sextortion. Understanding how these cyberfraudsters manage and launder their illicit earnings is crucial for developing effective countermeasures. A recent field study conducted by Swiss and Ivorian research teams sheds light on the strategies Ivorian cybercriminals employ to handle their criminal proceeds and the challenges faced by law enforcement in curbing these activities.
The Ivorian Context: Legal Framework and Challenges
Côte d’Ivoire has made notable progress in establishing legal structures to combat money laundering and cybercrime, including laws enacted in 2016 and the formation of specialized prosecutorial units. However, gaps remain in enforcement and regulation, particularly regarding virtual asset service providers (VASPs) which are not yet regulated, despite their potential use in laundering proceeds through cryptocurrencies. The study highlights that while many suspicious transactions related to cybercrime are reported, few cases successfully lead to prosecution, indicating challenges in the practical application of anti-money laundering (AML) measures.
Methods Used by Cyberfraudsters to Receive Criminal Proceeds
Interviews with cybercriminals (“brouteurs”) reveal a highly networked approach involving several actors beyond the primary fraudsters. Key players include “buralistes” (professional middlemen or underground bankers) who facilitate the withdrawal and transfer of funds across multiple countries. Accomplices such as friends or diaspora members provide bank accounts for fund transfers, often receiving a commission. Corrupt agents within banks, police, and transfer agencies also play a pivotal role by enabling the opening of accounts using fake documents or permitting withdrawals without proper checks. The preferred methods of receiving money include transfer agencies (e.g., Western Union), bank transfers to mule accounts, prepaid cards, mobile money transactions, and occasionally cryptocurrency wallets.
Spending and Investment of Illicit Gains
Once received, criminal proceeds are used both for immediate consumption and investment. Cyberfraudsters often spend on luxury goods, parties, vehicles, and daily expenses, aiming to project social success and maintain status among peers. They also redistribute funds within their community and family, reinforcing social ties. Many invest in small businesses — such as transportation services, cybercafés, restaurants — and real estate or mining ventures to secure long-term financial stability. These investments often serve a dual purpose: laundering money and legitimizing their wealth.
Money Laundering Strategies and Network Structure
The study finds that Ivorian cyberfraudsters use relatively unsophisticated but effective money laundering techniques such as smurfing (splitting large amounts into smaller transfers), using fake companies for bank accounts, and relying on cash withdrawals to avoid traceability. Networks are structured with core members (the brouteurs), professional enablers (middlemen providing documents or IT support), recruited enablers (individuals with access to key resources), and money mules (witting or unwitting participants who move money). Corruption within public institutions significantly facilitates these operations.
Challenges for Law Enforcement and Anti-Money Laundering Efforts
Despite robust legislation, law enforcement agencies face challenges including limited resources, lack of training, and difficulties in inter-agency coordination. The anonymity offered by the internet, rapid transaction speeds, and transnational nature of cybercrime complicate investigations. Moreover, the involvement of corrupt officials hinders efforts to detect and prosecute these crimes effectively. The study suggests that combating cyberfraud requires coordinated international cooperation, dedicated units focused on cyber-enabled financial crimes, and strategies to deter the use of money mules.
Conclusions and Implications
The research provides valuable insights into how Ivorian cyberfraudsters manage their illicit proceeds using complex networks involving multiple facilitators and corruption. Their preference for cash transactions and traditional money laundering methods indicates that existing AML frameworks may not be fully effective or enforced. To improve responses, authorities should focus on disrupting these networks holistically — targeting not only cybercriminals but also their financial facilitators and corrupt enablers. Enhanced training, resource allocation, and international collaboration are essential for strengthening the fight against cyber-enabled financial crime in Côte d’Ivoire and beyond.
