The Dark Nexus: Unraveling the Connection Between Financial and Cybersecurity Crime

A recent publication by Laura Whitt-Winyard, writing for The Institute for Critical Infrastructure Technology, summarizes the connection between financial and cybersecurity crime, also known as the “Dark Nexus.” The use of cryptocurrency, especially Bitcoin, is cited as one of the most frequent examples of this crossover, which includes money laundering. These attacks are usually conducted through phishing and ransomware to gain financial access to their victims. The focus of the article includes possible preventative measures against the Dark Nexus, citing the cooperation necessary from both law enforcement and financial institutions. With a focus on the financial institutions, the author cites the necessary monitoring that must occur especially with cryptocurrency to prevent money laundering. While there are currently regulations in place, such as the Financial Crimes Enforcement Network in the United States, cryptocurrency by its nature is heavily decentralized, making the tracking of illegitimate transactions more difficult. However, because technology must be used for these crimes, the author stresses that this is the key to counter strategies, including anti-money laundering (ALM). Under this regulation, financial institutions must report suspicious activity. This data collection helps detail the extent of cyber and financial crimes. However, it is argued that international cooperation is necessary (as this kind of crime transcends normal borders). Institutions in place include the Financial Action Task Force (FATF), Joint Cybercrime Action Taskforce (J-CAT), and traditional law enforcement agencies. This cooperation is necessary for the communication of vital intelligence that can be used to combat the Dark Nexus. What is key from this work is that further cooperation and information sharing amongst institutions will be critical to combat the decentralized nature of cyber and financial crime.