Virtual Economies and Financial Crime

Virtual Economies and Financial Crime

Money Laundering in Cyberspace

Clare Chambers-Jones

Clare Chambers-Jones examines the jurisprudential elements of cyber law in the context of virtual economic crime and explains how virtual economic crime can take place in virtual worlds. She looks at the multi-layered and interconnected issues association with the increasing trend of global and virtual banking via the ‘Second Life’ MMOG (Massively Multiplayer Online Game). Through this fascinating case study, the author illustrates how virtual worlds have created a second virtual economy which transgresses into the real, creating economic, political and social issues. Loopholes used by criminals to launder money through virtual worlds (given the lack of jurisdictional consensus on detection and prosecution) are also highlighted.

Glossary

Clare Chambers-Jones

Subjects: economics and finance, economic crime and corruption, money and banking, law - academic, corruption and economic crime, criminal law and justice, finance and banking law, information and media law, politics and public policy, terrorism and security

Extract

Avatar BCCI BOE CML CSR Digital currencies E-gold online creation of a person. User’s persona created online for virtual worlds Bank of Credit and Commerce International Bank of England Council for Mortgage Lenders corporate social responsibility electronic money used within an online game/ platform a company which traded gold on an immediate basis, traded illegally and was prosecuted for illegal activities any form of economic crime such as fraud, money laundering, theft which is performed via the internet. Used interchangeably with virtual economic crime and virtual financial crime End User Licence Agreement Fraud Advisory Panel Financial Services Authority Financial Services and Markets Act Global Digital Currency Association creation of wealth by people creating goods and services to be sold online in games criminal activity related to drug trafficking, human trafficking and financial crime interstellar credits Internet Service Provider mobile accounts Massively Multiplayer the process of making illegally gained money to appear to be legal National Fraud Authority Organisation for Economic Co-operation and Development Economic cyber crime EULA FAP FSA FSMA GDCA Gold farming Illicit crime ISK ISP m-accounts MMO Money laundering NFA OECD 223 M2895 - CHAMBERS-JONES TEXT.indd 223 11/05/2012 12:16 224 Virtual economies and financial crime Phishing Residents RIPA RMT Second Life SL Spamming TOS TOU UNCITRAL Users UUI Virtual economic crime Virtual economy Virtual financial crime Virtual goods Virtual money Virtual money laundering Virtual world World of Warcraft WSIS WWIIOL a means of attempting to acquire sensitive information such as usernames, passwords and credit card details over...