A major bank in Kenya was severely attacked, losing about 500 million Kenyan shillings due to a vulnerability in the card management system.
Criminal groups have created unauthorized virtual cards linked to mobile wallets and used cryptocurrencies to transfer money, complicating the tracing and recovery process.
MAIN CONTENT
The Kenyan bank lost nearly 4 million USD due to an internal card system attack.
Tether (USDT) stablecoin is used in sophisticated money laundering processes.
The Kenyan investigation agency collaborates with the internal cybersecurity team to implement the arrest of suspects.
How did the internal attack at the Kenyan bank occur?
The attack was confirmed to be carried out by a criminal group within the system, according to cybersecurity experts from Techbuild. They exploited the card management server to create unauthorized virtual cards linked to multiple mobile wallets, resulting in a loss of more than 500 million Kenyan shillings (approximately 4 million USD).
According to the 2023 report by Cybersecurity Watch, similar incidents often result from internal governance vulnerabilities or collusion of technical staff with third parties.
"Today's sophisticated attacks not only steal data but also manipulate systems to withdraw money directly, especially with the aid of cryptocurrency technology, making tracing more difficult than ever."
John Mwangi, Cybersecurity Director at Techbuild, July 2023
What role does Tether (USDT) play in the money laundering process?
Investigators found that the Tether stablecoin is the main channel for transferring stolen money. Converting to USDT allows criminal groups to quickly launder money through various offshore wallets and complex transactions.
The use of Tether (USDT) as an intermediary is highly valued for its stability and liquidity, greatly complicating the recovery of stolen assets.
What is Kenya investigating to handle the case?
The Kenyan Criminal Investigation Agency has officially collaborated with the bank's internal cybersecurity team to identify the cause and method of attack. The perpetrators are expected to be arrested soon.
The investigation campaign is based on tracing On-chain and Off-chain transaction systems to stop suspicious money transfer flows.
"We are committed to strictly addressing acts of attack and money laundering in the financial market, especially organized violations like the recent incident."
Samuel Karanja, Head of Financial Crime Investigations in Kenya, July 2023
Real-life examples of the impact of cryptocurrency in bank money laundering
The case of the Kenyan bank clearly demonstrates how cryptocurrencies like Tether provide a fast and difficult-to-control trading channel, especially in internal attacks combined with high technology. According to the 2023 report by the International Alliance for Financial Crime Prevention, cryptocurrencies are continuously used by criminal groups to diversify money laundering methods.
Frequently Asked Questions
1. Why is cryptocurrency used in money laundering?
Cryptocurrencies like Tether have high liquidity, fast transactions, and are somewhat anonymous, making tracing and recovering money more difficult for authorities.
2. What can banks do to prevent similar attacks?
Enhancing the security of card management systems, continuously monitoring internal transactions, training employees, and applying AI technology to monitor unusual behavior.
3. What is the role of investigative agencies in cryptocurrency-related money laundering cases?
They collaborate closely with the cybersecurity team, using On-chain transaction analysis techniques to trace and temporarily seize suspicious assets.
4. Is Tether safe for financial transactions?
Tether is a stablecoin trusted by many organizations, but it can also be exploited when not closely monitored during transactions.
5. How can cryptocurrency users protect themselves?
Always choose to use reputable wallets, do not share your Private Key, regularly update software, and be cautious with unusual transactions.
Source: https://tintucbitcoin.com/ngan-hang-kenya-mat-4-trieu-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
