Criminal Investigation Division (CID) of Internal Revenue Service (IRS) is actively hiring private contractors for studying and analyzing high anonymity coins.
Monero – popular choice among fraudsters.
While the global world is being attacked by coronavirus, cybercriminals have been working hard fulfilling their usual illegal activities with anonymous assets.
Monero (XMR) and Zcash (ZEC) are extremely attractive for cybercriminals as they provide higher anonymity and confidentiality than BTC. IRS is aiming at de-anonymizing all confidentiality altcoins to bring an end to cybercrimes.
Why Monero is that attractive for criminals?
Currently XRM is on the top of the list for most private cryptos on market. Monero transactions are based on the blockchain technology, and they are more difficult to track, partially due to ring signature and hidden addresses. Besides, because of that the asset’s data ledger is publicly accessible, this is a popular choice of cybercriminals in fulfilling their illegal purposes.
Another confidentiality coin which will be researched by IRS is Zcash. ZEC uses an anonymous instrument called Zero-Knowledge-Proof which enables users communicate not showing their real addresses.
In other words, this hampers tracing and identifying sender, and vice versa. Due to the end-to-end encryption, Zcash users can preserve anonymity while making numerous online transactions.
Confidentiality of coins and cyber crimes.
Confidentiality altcoins like Monero and Zcash represent the widely spread cryptos in criminal environment. On the contrary, BTC cannot offer such anonymity, and therefore it is not as attractive for cybercriminals.
Different coins have different anonymity levels depending on the type of asset.
This type is highly approachable for criminals since it hides transaction amounts, wallet addresses, ID of both sender and recipient. Furthermore, it’s extremely challenging to track these transactions.
Because of high anonymity offered by confidentiality tokens, such fraudulent activities like money laundering and tax evasion are typical for Monero and Zcash. How does IRS aim to put an end to cyber crimes?
On the basis of Request for information (RFI) publishes by IRS program for criminal investigations, private contractors working for this program, have developed a software used for detecting suspicious transactions.
Illegal activities reported by law enforcement agencies in the past, will be collected and analyzed in order to prevent similar phishing attacks and frauds.
US law enforcement agencies aim to develop more innovative technological strategies for tracing confidentiality coins, protocol networks of the second level and side chains.