Topic: Machine Learning is Needed to Detect Money Laundering (Read 323 times)
Its not about crypto or machine learning.its always been and it will be.its about sickness and weakness of humanity.there will be someone who money laundring and who ignore them.
Their real fight is versus the mixing services, is fun to see how they use artificial intelligence to try to decode those mixing services. But i think they will not be able to do it. But at least they are allowed to try it, since blockchain is public information anyone can play with the data as they want. But i don't like much the idea of private business tracking all transactions.
I don't think it'll be very revolutionary against mixing services, some government agencies nowadays are able to track these transactions via their own men, and it'll only just speed things faster, not track transactions that were unable to be tracked before.This comes in as good news as this move will give authorities a better shot at tracking down output addresses from tumbling services. The only thing I'm waiting to see is how they will deal with time delay between input and output spends even when the amount of BTC would be high and big transactions keep popping up rapidly into the pool.
Either ways, this is good stuff as this will reduce money laundering in the form of Bitcoin over time and launderers will have second thoughts of using mixers.
It's not really the whole point of this. BTC is a very small amount of money laundering, and I don't think that this will be their primary focus, as I said before, a lot of large volume transactions are already able to be tracked by man.Either ways, this is good stuff as this will reduce money laundering in the form of Bitcoin over time and launderers will have second thoughts of using mixers.
It's not like money laundering is a crypto only issue. Of course if you're a major bank you can do it and pay a fine, without getting in trouble. At least with the blockchain the dirty laundry is harder to hide.
https://www.marketwatch.com/story/netflix-documentary-re-examines-hsbcs-881-million-money-laundering-scandal-2018-02-21
"HSBC, Europe’s biggest bank, paid a $1.9 billion fine in 2012 to avoid prosecution for allowing at least $881 million in proceeds from the sale of illegal drugs. In addition to facilitating money laundering by drug cartels, evidence was found of HSBC moving money for Saudi banks tied to terrorist groups. Even though federal investigators found evidence “that senior bank officials were complicit in the illegal activity,” no HSBC executives faced charges for their actions. "
Exactly what I meant! BTC makes up a very small part of money laundering, and I'm hoping the new AI that is being developed isn't going to be purely crypto-related but will punish banks as well.https://www.marketwatch.com/story/netflix-documentary-re-examines-hsbcs-881-million-money-laundering-scandal-2018-02-21
"HSBC, Europe’s biggest bank, paid a $1.9 billion fine in 2012 to avoid prosecution for allowing at least $881 million in proceeds from the sale of illegal drugs. In addition to facilitating money laundering by drug cartels, evidence was found of HSBC moving money for Saudi banks tied to terrorist groups. Even though federal investigators found evidence “that senior bank officials were complicit in the illegal activity,” no HSBC executives faced charges for their actions. "
It's not like money laundering is a crypto only issue. Of course if you're a major bank you can do it and pay a fine, without getting in trouble. At least with the blockchain the dirty laundry is harder to hide.
https://www.marketwatch.com/story/netflix-documentary-re-examines-hsbcs-881-million-money-laundering-scandal-2018-02-21
"HSBC, Europe’s biggest bank, paid a $1.9 billion fine in 2012 to avoid prosecution for allowing at least $881 million in proceeds from the sale of illegal drugs. In addition to facilitating money laundering by drug cartels, evidence was found of HSBC moving money for Saudi banks tied to terrorist groups. Even though federal investigators found evidence “that senior bank officials were complicit in the illegal activity,” no HSBC executives faced charges for their actions. "
https://www.marketwatch.com/story/netflix-documentary-re-examines-hsbcs-881-million-money-laundering-scandal-2018-02-21
"HSBC, Europe’s biggest bank, paid a $1.9 billion fine in 2012 to avoid prosecution for allowing at least $881 million in proceeds from the sale of illegal drugs. In addition to facilitating money laundering by drug cartels, evidence was found of HSBC moving money for Saudi banks tied to terrorist groups. Even though federal investigators found evidence “that senior bank officials were complicit in the illegal activity,” no HSBC executives faced charges for their actions. "
Machine learning or artificial.intelligence will be very helpul in many areas and it will certainly help to detect money laundering since scheems are becoming more and more sophisticated. But I don't think that money laundering connected with cryptocurrencies is such a big issue, I think that is still much more represented in traditional currencies. Still the ways that machine learning could be implemented will definetely change many areas in our lives.
I don't know if anyone has recently saw the AML report recently published by Ciphertrace but I found it interesting in seeing the current landscape of money laundering and exactly why we should look into ways to help track. I have a feeling that mixers are going to become illegal especially after the Bestmixer incidence. We're going to see much more governments start to step in
https://ciphertrace.com/q2-2019-cryptocurrency-anti-money-laundering-report/
I am just curious how this Machine Learning will be useful in the future for tracing money launderer. One thing that would make their work hard is the mixer company. If mixer would be illegal in the future in the sense of helping the community to track money launderer then there is a little problem for people who do like to stay anonymous while making some transactions. https://ciphertrace.com/q2-2019-cryptocurrency-anti-money-laundering-report/
I don't know if anyone has recently saw the AML report recently published by Ciphertrace but I found it interesting in seeing the current landscape of money laundering and exactly why we should look into ways to help track. I have a feeling that mixers are going to become illegal especially after the Bestmixer incidence. We're going to see much more governments start to step in
https://ciphertrace.com/q2-2019-cryptocurrency-anti-money-laundering-report/
https://ciphertrace.com/q2-2019-cryptocurrency-anti-money-laundering-report/
well...
You have Value Laundering (transactions involving btc to tangable goods / services) mixed with Money to bitcoin conversions (and vice versa).
What selective indicators can you attribute to a money laundering output? You need to build a classifier with sufficient good training sets to effectively apply kernel method and relavent Markov chain to the raw blockchain transaction data. This is where I would begin and put my attention to
You have Value Laundering (transactions involving btc to tangable goods / services) mixed with Money to bitcoin conversions (and vice versa).
What selective indicators can you attribute to a money laundering output? You need to build a classifier with sufficient good training sets to effectively apply kernel method and relavent Markov chain to the raw blockchain transaction data. This is where I would begin and put my attention to
I don't tolerate money laundering schemes inside crypto networks such as Bitcoin and I welcome this initiative to use deep learning to detect such illicit activities yet I would like to point out that fraudstera will always find a way to circumvent it thus I hope it could be really effective and foolproof once implemented. Imho.
True, it's high time something like this come into play to help put a stop to moey laundering activities which tends to give cryptos such negatives report by the media though there are a lot of positives which they don't report. 
I wonder how that will work. Machine learning requires a ton of good data as an input, so the network can learn the patterns and then see them in any data, but where did these companies get a huge list of money laundering transactions? And how can we be sure that they don't screw things up and start labeling as money launderers innocent people who use mixers to get more privacy?
Well this could only be a tool to assist detecting suspicious activity at best, but it isn't going to be accurate, especially at first. For example a a flag would be the fact that it used a Mixing service. I'm not against them, and people using them aren't necessarily money laundering, but it increases suspicious level and its one of the factors the AI will take into consideration.
But, i don't think it will help much. It might help catch a few lazy money launderers, but the good ones will be able to do it undetected anyway. Chances for false positives is too high in my opinion.
This comes in as good news as this move will give authorities a better shot at tracking down output addresses from tumbling services. The only thing I'm waiting to see is how they will deal with time delay between input and output spends even when the amount of BTC would be high and big transactions keep popping up rapidly into the pool.
Either ways, this is good stuff as this will reduce money laundering in the form of Bitcoin over time and launderers will have second thoughts of using mixers.
What I would have prefer that they deal more on right now is how to make sure that the system of cryptocurrency is free and void of scammers because this is the one that is really tarnishing the image of cryptocurrency and not money laundering, for now, I am not even sure that people use it that much to launder money, maybe because those that are into money laundering does not know about the cryptocurrency yet.Either ways, this is good stuff as this will reduce money laundering in the form of Bitcoin over time and launderers will have second thoughts of using mixers.
The one presently at hand now which is quite dangerous to the survival of crypto is that of scamming, especially through ICO, this has to stop because it is getting too much, just last week here, about 6 of my friends were all scammed and now they are so much discouraged about cryptocurrency, we don’t need people leaving crypto now.
This comes in as good news as this move will give authorities a better shot at tracking down output addresses from tumbling services. The only thing I'm waiting to see is how they will deal with time delay between input and output spends even when the amount of BTC would be high and big transactions keep popping up rapidly into the pool.
Either ways, this is good stuff as this will reduce money laundering in the form of Bitcoin over time and launderers will have second thoughts of using mixers.
Either ways, this is good stuff as this will reduce money laundering in the form of Bitcoin over time and launderers will have second thoughts of using mixers.
very good technological development
but a little worried whether there will be a problem or bad news about bitcoin if the machine is ready, but it is very good
because there must be money laundering through bitcoin
but a little worried whether there will be a problem or bad news about bitcoin if the machine is ready, but it is very good
because there must be money laundering through bitcoin
I wonder how that will work. Machine learning requires a ton of good data as an input, so the network can learn the patterns and then see them in any data, but where did these companies get a huge list of money laundering transactions? And how can we be sure that they don't screw things up and start labeling as money launderers innocent people who use mixers to get more privacy?
That is a good point. Would it make sense that these machine learning capabilities only be available to public blockchains say like Bitcoin or Ethereum versus private ones? I would be interested in understanding how they separate innocent people versus those that are using mixers to get more privacy. My guess is movements in and out of exchanges and movements of money across countries quickly.
I wonder how that will work. Machine learning requires a ton of good data as an input, so the network can learn the patterns and then see them in any data, but where did these companies get a huge list of money laundering transactions? And how can we be sure that they don't screw things up and start labeling as money launderers innocent people who use mixers to get more privacy?
Their real fight is versus the mixing services, is fun to see how they use artificial intelligence to try to decode those mixing services. But i think they will not be able to do it. But at least they are allowed to try it, since blockchain is public information anyone can play with the data as they want. But i don't like much the idea of private business tracking all transactions.
Money laundering is something that has been going on for many years. This has nothing to do with the crypto. On the contrary, I think that if a controlled decentralization is presented in the right ways, a more transparent economic life can be sustained by cryptocurrencies. It's ridiculous to be treated as if there were no economic crimes like money laundering and theft in the past (before cryptocurrencies)!
It has always good to work toward making the community great and stopping the launders , the regulators are good to main a script community and technology by protecting users and the tech,
And how are users protected by this exactly?
This is just another attempt to shove even more regulation into the cryptocurrency sphere.
I'm sure there will be ways to circumvent this and the regular users will be the ones really affected by this.
Just so they can send more automated letters, reminding people to pay taxes on their crypto holdings.
This sounds like a really weird article. It's like they think they can do anything with AI and machines these days, which is just not the case.
When the can break Mixer services, all financial privacy goes up in flames. 
That might be crazy. I've seen machines be really good at learning patterns and track bank and other transactions via it, this seems like a very possible option, and a very gloomy future for us if it's true.
I wonder how surveillance companies will be able to track transactions that were done through Mixer services. 
I know I read somewhere that it becomes easier to track bitcoins, when large amounts of coins are pushed through Mixer services, but I do not know if this is possible with smaller transactions.
I think they will use machine learning to spot transaction trends that might indicate that money laundering are done, because bigger money laundering operations are shifting a lot of money on a constant bases.
When the can break Mixer services, all financial privacy goes up in flames.
I know I read somewhere that it becomes easier to track bitcoins, when large amounts of coins are pushed through Mixer services, but I do not know if this is possible with smaller transactions. I think they will use machine learning to spot transaction trends that might indicate that money laundering are done, because bigger money laundering operations are shifting a lot of money on a constant bases.
When the can break Mixer services, all financial privacy goes up in flames.
these are companies that are created to sell certain services related to blockchain analysis so they keep coming up with weird things like this claiming to be innovating new ways of analyzing the blockchain while all they do is repeating what has been done for many years and also were known ways of linking transactions together for a long time.
Jump to: