Virtual Identity, Anonymous Payments and the Shadow Internet

carpentergambrinousΑσφάλεια

3 Δεκ 2013 (πριν από 3 χρόνια και 4 μήνες)

203 εμφανίσεις

Scott
Dueweke


Senior Associate of Virtual Identity Management
Booz Allen Hamilton
Global Trends
ID WORLD Abu Dhabi
18-19

March

2012
Conference Host:
Virtual Identity, Anonymous Payments and the
Shadow Internet

Organized by:
1
Scott Dueweke 



The Anonymous Internet Economy

ID World Abu Dhabi
2012

2
The Anonymous Internet Economy:
e-cash, e-wallets, and
digital currency exchangers
E-Cash Provider
(aka, e-gold)
4

Sell digital
currency
through cash,
mobile, online,
or bank wire
transactions
E-Wallet
Provider (aka, e-
purse, e-
payment
providers, digital
wallet)
4

Online platform
to hold,
transfer, receive
or exchange
digital currency
Digital Currency
Exchangers or
DCEs
(aka, e-money
remitters)
4

Exchange real
and digital
currencies for
one another
Services
4

Transactional
exchange,
no
accounts or
records
4

Can be
anonymous
4

User must create
account for
ongoing use
4

Varying degrees
of anonymity
4

Mostly online
vendors
4

Traditional
hawaladars
and
FOREX houses offer
this service
4

U-Kash (UK)
4

Cash-U (Egypt)
4

AMEX Pre-Paid
Cards (US)
4

WebMoney
(Russia)
4

Liberty Reserve
(Panama)
4

PayPal (US)
4

DuyDuy
Changer
(Indonesia)
4

MerchantKG
(Kyrgyzstan)
4

Karsha (Iran)
Key Differentiators
Example Firms
Mechanism Type
3
Online games, virtual worlds, and social networks compliment
these mechanisms with transfer and value creation capabilities
Online Gaming,
Virtual Worlds,
and Social
Networking Sites
4

Gaming consoles, MMOs, and platforms create their
own virtual currencies; some of which can be traded or
exchanged for other digital currencies or real currency
through
digital currency exchangers
4


Gold farms

-- organizations that use virtual worlds /
games exclusively to create and sell virtual currency for
real currency -- are growing in number
Online Gambling
4

On-line gambling sites – e.g., those used for on-line
bingo, poker, and other games – accept a variety of
payments including e-wallets like Moneybookers
4

GamingZion.com
is an online gambling directory that
identifies gambling sites around the world by
country
Role in Internet Payments and Transfer
4

Second Life Linden
Dollars
4

Microsoft Points
4

World of Warcraft
Gold
4

Offgamers (DCE)
4

MYMMOSHOP.com
(DCE)
4

Gamingzion.com
4

Golden Rivera Casio
4

Zodiac Casino
Examples
Firm Type
A February 2010
Wired
magazine
article noted the explosion in unique
virtual / digital currencies used in
virtual worlds and social networking
sites
4
In spite of their virtual nature, these internet financial mechanisms
have several links to traditional financial services
Deposit Funds

Withdraw Funds

Use Funds on the Internet

Transfer Funds

Transfer Funds

Illustration of funds deposit, transfer, use, retransfer and withdrawal
Deposit Funds
Credit
Card
Bank Wire
Online
Bank
Kiosk
Digital
Currency
Exchanger
(DCE)
Cash
E
-
Wallet
E
-
Commerce
Online Gaming
Social Networks
Online Gambling
Peer
-
to
-
Peer
DCE
DCE
DCE
DCE
E
-
Wallet
Traditional FS
Digital
Currency
Exchanger
(DCE)
E
-
Cash
E
-
Cash
Debit
Card
Credit
Card
Bank Wire
Online
Bank
Kiosk
Cash
Traditional FS
Debit
Card
DCE
DCE not always required
for online gambling
5


Started as a project sponsored by the US Naval Research Lab, TOR enables users
to surf the web anonymously and allows access to TOR specific sites


These sites are accessed via .onion TLD and are used to host illegal file sharing,
currency exchange, and illicit drug purchases. Users never know the site's true
IP


eCache offers anonymous digital cash in the form of cryptographically secured
DBC (Digital Bearer Certificates), which are backed with gold coins they hold in
their secured vault


Does not require any personal information and no 

transaction data is stored
Anonymous Gold Example: TOR – The
Shadow Internet
and
Virtual Gold

6
http://624eb2rznzhtq2cz.onion
The Shadow Internet (TOR) Usage Example:
.onion Weed

7
For example, the US Government shut down Florida-based 

e-Gold for operating thousands of Iranian accounts
In 2009, Gold and Silver Reserve, Inc, provider of

e-Gold

, was fined $3M by the US
Treasury Department for activating 56,700 Iranian digital money accounts between
September 2003 and December 2006.
Currency conversion company activated thousands of Iranian accounts
By Richard Lardner
October, 1, 2009
WASHINGTON – A Florida company has been fined nearly $3M for activating thousands of
electronic currency accounts for customers in Iran, the Treasury Department said Thursday.
Gold & Silver Reserve Inc., of Melbourne exported financial services without a license, violating
federal regulations governing transactions with Iran, the department said.
Between September 2003 and December 2006,
more than 56,700
of the company

s e-currency
accounts were opened by persons located in Iran, according to the announcement, and Gold &
Silver Reserve did not voluntarily disclose the violations to the department of Office of Foreign
Assets Control.
Sources: http://blog.taragana.com/law/2009/10/01/currency-conversion-company-activated-thousands-of-iranian-
accounts-treasury-department-says-13449/; http://www.petitiononline.com/km873x/petition.html
8
Who is using BITCOIN?
Courtesy of
http://www.weusecoins.com

via YouTube


9
Online sale of psychedelic drugs via BITCOIN
Anonymous
Fungible
Destabilizing

a) Your coins
can

t be frozen
(like a Paypal
account can
be)

b) Your coins
can

t be
tracked

c) Your coins
can

t be taxed

d) Transaction
costs are
extremely low
(sorry credit
card
companies)




10
Online sale of drugs and contract murders via
BITCOIN
Uploaded to YouTube by
ugosims
on Sep 3, 2011
11
How to hire a murderer with BITCOIN:
1) If you hire me in EU countries, you pay me 5000 EUR (in Bitcoins) in advance to prepare
everything for action (buying of weapon, car or motorcycle, fake docs, driving license, etc). If you
want target eliminated out of EU, then you must pay 10 000 EUR (in Bitcoins) in advance and you
must wait 2 months that I can come there. On my price, you should add the fee of owner of this
website, I think it is 4% but you should check it.

2) If you have any problem with any kind of enemy who disturb your life, you can hire me. For
example, many criminals will refuse to kill a cop, prosecutor, judge, etc, because they don't want to
come under pressure of police and newspapers. I am not part of organized criminality and I can do
any job.

3) Target must be older than 16.

4) You must give me in advance next information about target: picture, name, approximately age,
home and working address, what car he/she uses and what is registration of the car. If you know
how many members of family are in house, it would be good to know, but it is not condition. Any
photo file must be uploaded to anonymous server: ********* - supported file types: gif, jpg, jpeg and
png. max 2MB, link will be visible only to us because it will be encrypted in message.

5) Prices are different, depending who is target. You must send me money 2 times, first time 5 000
EUR, when I buy weapon and everything what I need for action, you must pay the rest of money,
after that I finish the job. You need somebody to be eliminated, I don't need it, so, you must take a
risk about money, everything is anonymous, so...I don't want to eliminate for half price.

- To eliminate some ordinary person, my price is 20 000 EUR (in Bitcoins).

- To eliminate criminal or cop, my price is 50 000 EUR (in Bitcoins). If he is bog boss or higher
ranking cop, price is 100 000 EUR (in Bitcoins).

- To eliminate paparazzi, my price is 50 000 EUR (in Bitcoins) and for journalist 100 000 EUR (in
Bitcoins).

- To eliminate a businessman, price range from 50 000 to 200 000 EUR (in Bitcoins).

- To eliminate your rich wife/husband, price depend from wealth of that person.


12
Bitcoin Value over Time
Wired Magazine,
11/11
13
)
Summary


New payment ecosystems are flourishing


Many of these systems are enabled by virtual
identity to be anonymous


Most of these systems are poorly understood


These systems reach is broad and growing,
but the depth of their ability to handle large
transactions is unknown


Organized crime as well as those seeking
systemic change to the existing world financial
order are involved with these systems
14
Thank
You!
4

For more information please contact:
 


Booz Allen & Hamilton Inc.
13200 Woodland Park Rd.
Herndon, VA 20171
Mobile 540-671-0400
Scott_dueweke@bah.com
Scott Dueweke

Senior Associate