Points or credits awarded through various programs and gaming environments, redeemable for goods, services, or experiences. Examples include airline miles, retail points, and in-game gold, typically used within their respective ecosystems.
Main/
Virtual Loyalty Points and In-Game Currencies
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Code
IN0052
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Name
Virtual Loyalty Points and In-Game Currencies
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Version
1.0
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Category
Crypto & Other Digital Tokens
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Created
2025-02-04
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Modified
2025-04-02
Related Techniques
- Criminals convert illicit funds into in-game currencies that are often subject to weaker AML controls.
- They then reconvert these currencies into fiat or cryptocurrencies, layering transactions and breaking the chain to the original illicit source.
- Rapid swapping or trading of these points/currencies between multiple accounts further complicates investigators’ efforts to track suspicious activity.
- Illicit funds are loaded into in-game balances, which can be transferred among multiple player accounts, often with minimal verification.
- Because many virtual platforms have weak AML procedures, criminals can repeatedly recycle these points or credits across different games or linked accounts, creating complex transaction chains.
- Eventually, they may redeem or exchange these balances for real value (fiat or crypto), further obscuring the origin of the funds.
- Criminals exploit unregulated or loosely monitored cross-game currency exchanges to switch or "cash out" in-game credits anonymously.
- By shifting these currencies between multiple gaming platforms and third-party brokers, they layer and disguise illicit proceeds, bypassing official payment systems.
- Inconsistent AML controls across platforms reduce visibility into transaction flows, allowing rapid transfers with little to no customer due diligence.
- Criminals convert illicit funds into in-game currencies that appear 'non-convertible,' yet can be monetized via grey markets and third-party websites.
- By splitting high-value deposits into numerous microtransactions, they evade straightforward transaction monitoring.
- Once disguised within the game ecosystem, the in-game currency is reconverted or withdrawn—often through player-to-player trades or external marketplaces—making it appear as legitimate gaming activity.
- Criminals exploit loyalty or reward points as unregulated stored value, converting illicit funds into large point balances with minimal AML scrutiny.
- Many programs lack formal loading limits, allowing fraudsters to deposit significant sums without triggering traditional financial controls.
- Points can be transferred or pooled across multiple user accounts—a layering tactic that obscures ownership and complicates transaction tracing.
- Many loyalty programs allow converting or redeeming points for near-cash instruments or valuable goods, enabling criminals to spend or cash out illicit funds while avoiding traditional banking oversight.
- The lack of robust KYC or transaction monitoring in these programs reduces detection risk, making it harder for financial institutions to trace or flag suspicious activity.