Europol Reveals How Cyber Criminals Boost Economy By Hacking Legal Businesses

Europol has unveiled its latest report, “Leveraging legitimacy: How the EU’s most threatening criminal networks abuse legal business structures,” shedding light on the alarming extent to which cybercriminals are infiltrating legitimate businesses to expand their illicit operations.

Building upon Europol’s April 2024 study, the report exposes a disturbing trend: 86% of the EU’s most dangerous criminal networks are exploiting legal business structures to strengthen their grip on the economy.

This abuse of legitimate enterprises has become a critical enabler of organized crime, facilitating money laundering, distorting economic competition, and expanding criminal influence.

Key findings reveal that criminals are employing sophisticated methods to infiltrate businesses. High-level infiltration and outright ownership of legal entities allow criminal networks to blend legitimate and illicit activities seamlessly.

Some companies are established purely as fronts for criminal operations, while others are taken over to serve long-term criminal goals. The cross-border nature of this threat is particularly concerning.

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While 70% of exploited or infiltrated companies operate within the EU or neighboring countries, criminal networks have extended their reach globally, with infiltrated businesses identified in nearly 80 countries worldwide.

Insider threats pose a significant risk, with employees, managers, and executives in legitimate positions being exploited to gain access, knowledge, and influence over operations.

This level of infiltration allows criminals to create economic dependencies within local communities, shielding their activities from law enforcement scrutiny.

Cash-intensive businesses are particularly vulnerable, often used to conceal money laundering activities and create unfair advantages that undermine legitimate enterprises.

The report also highlights how criminally controlled businesses frequently serve multiple networks simultaneously, enabling various forms of serious and organized crime.

Europol’s findings underscore the need for a comprehensive, multi-layered strategy to combat this pervasive threat.

The agency emphasizes the importance of collaboration between law enforcement, regulators, the private sector, and international allies to effectively address the issue.

As cybercriminals continue to evolve their tactics, leveraging artificial intelligence and advanced social engineering techniques, the need for robust cybersecurity measures and increased awareness has never been more critical.

Europol’s report serves as a wake-up call for businesses and governments alike, highlighting the urgent need to strengthen defenses against the growing sophistication of cyber threats in an increasingly interconnected global economy.

Guru Baran
Gurubaran is a co-founder of Cyber Security News and GBHackers On Security. He has 10+ years of experience as a Security Consultant, Editor, and Analyst in cybersecurity, technology, and communications.