Dark web merchants are offering Russians services for bypassing international sanctions that may indirectly involve US financial institutions, according to a report by Recorded Future. Cybercrime markets are advertising two strategies for evading sanctions: cryptocurrency virtual credit cards and mail-forwarding services.
Russians are reportedly turning to cryptocurrency to obtain goods and services from abroad and, in the case of domestic cybercriminals, to monetize illicit activities.
Experts warn that international financial institutions and merchants that are indirect participants in these workarounds may be at risk of falling under secondary sanctions.
Recorded Future researchers obtained a cryptocurrency virtual credit card without having to verify their identity, registering a card carrying a value below the threshold at which firms must do identity checks.
When the researchers traced the card’s origin, they found it had been issued by a US financial services firm. While potential use of cryptocurrency virtual credit cards to evade sanctions could be better mitigated if firms add additional “know your customer” and anti-money laundering checks, stolen personal identifiable information abounds, via which individuals can attempt to fake their identity with a cryptocurrency exchange.
The report suggests that the illicit delivery of goods in Russia has been updated to facilitate getting stolen, banned, prohibited or blocked goods into the country, with cybercrime-as-a-service ecosystem providing similar capabilities.
Service providers often advertise their ability to get goods delivered to warehouses outside Russia, from which they get routed to buyers inside the country.
According to cybercrime underground chatter, while not all goods get through, the success rate appears to remain relatively high.
The World Bank, the International Monetary Fund and the Organization for Economic Cooperation and Development reported that 2022 was a bad year for the Russian economy, with Russia’s gross domestic product dropping by between 2.2% and 3.9%, and they forecast that it could shrink further this year.
In March 2022, Deputy US Treasury Secretary Wally Adeyemo warned that there would be repercussions for organizations that facilitated sanctions evasion. More than 1,000 companies have now curtailed operations in Russia, reducing access to goods and services.
