By Tom G. Meling, Magne Mogstad, and Arnstein Vestre

We quantify the extent of crypto tax noncompliance and evasion, and assess the efficacy of alternative tax enforcement interventions. The context of the study is Norway. This context allows us to address key measurement challenges by combining de-anonymized crypto trading data with individual tax returns, survey data, and information from tax enforcement interventions. We find that crypto tax noncompliance is pervasive, even among investors trading on exchanges that share identifiable trading data with tax authorities. However, since most crypto investors owe little in crypto-related taxes, enforcement strategies need to be well-targeted or cheap for benefits to outweigh costs.

Chicago: University of Chicago, The Becker Friedman Institute for Economics (BFI) , 2024. 69p.

By Di Cooke, Abby Edwards, Alexis Day, Devi Nair, Sophia Barkoff, and Katie Kelly

THE ISSUE

• In recent years, threat actors have increasingly used synthetic media—digital content produced or manipulated by artificial intelligence (AI)—to enhance their deceptive activities, harming individuals and organizations worldwide with growing frequency.

• In addition, the weaponization of synthetic media has also begun to undermine people’s trust in information integrity more widely, posing concerning implications for the stability and resilience of the U.S.’s information environment.

• At present, an individual’s ability to recognize AI-generated content remains the primary defense against people falling prey to deceptively presented synthetic media.

• However, a recent experimental study by CSIS found that people are no longer able to reliably distinguish between authentic and AI-generated images, audio, and video sourced from publicly available tools.

• That human detection has ceased to be a reliable method for identifying synthetic media only heightens the dangers posed by the technology’s misuse, underscoring the pressing need to implement alternative countermeasures to address this emerging threat.

CSIS, 2024. 11p.

By: Carlton W. Reeves, Luis Felipe Restrepo, Laura E. Mate, Claire Murray, Claria Horn Boom, John Gleeson, Candice C. Wong, Patricia K. Cushwa, and Scott A.C. Meisler

The use of cyber technologies, such as cryptocurrency and the dark web, provides new and evolving means to commit crimes and avoid detection. These technologies are used to commit a variety of federal offenses. The dark web is sometimes used to create, hide, or access websites containing child pornography. Illegal drugs and firearms are sometimes sold through dark websites. Cryptocurrency is sometimes used to facilitate these crimes. [...] Regardless of the type of crime involved, the relative anonymity these technologies provide to their users creates challenges for the investigation and prosecution of the crimes committed with them. The use of cyber technology to commit crimes transcends national borders. As Interpol has found, this causes investigative and legal challenges that can be difficult to overcome. United States government agencies, such as the Federal Bureau of Investigation and the Financial Crimes Enforcement Network, have reported on the increasing threats from these technologies and estimated yearly losses in the billions from the crimes committed with these technologies. There has been little analysis on the individuals sentenced for a federal offense who use these technologies for illegal purposes, the offenses they committed, and trends in these areas over time. In developing this report, the United States Sentencing Commission ('the Commission') collected information on individuals sentenced for offenses using cryptocurrency, the dark web, and hacking for fiscal years 2014 through 2021."

United States Sentencing Commission Sep. 2024

By Christie Franks and Russell G Smith

Identity crime and misuse cost the Australian economy an estimated $3.1b in 2018–19 (Smith & Franks 2020). Protecting individuals’ personal identification information and finding secure ways to verify identities has become an increased priority as the impact of identity crime continues to grow in Australia and worldwide. Biometric technologies for identity verification provide an enhanced security solution, although implementation of biometric systems within Australian society has met with varying degrees of acceptance. Since 2013, the Australian Institute of Criminology (AIC) has conducted online surveys to gain a greater understanding of identity crime and misuse in Australia. These surveys have asked about respondents’ experience of identity crime and also their previous use of, and future willingness to use, biometric technologies to safeguard their personal information. This report presents both qualitative and quantitative research findings obtained from a sample of respondents in the most recent surveys concerning their experiences of biometrics and perceptions as to its role in identity security.

Research Report no. 20. Canberra: Australian Institute of Criminology. 2021. 76p.

By: Cassandra Cross

This article investigates the contributing factors (or triggers) to the realization of romance fraud victimization, based on 1015 reports lodged with Scamwatch (Australian online reporting portal for fraud) between July 2018 and July 2019 (inclusive). The article examines the free text narrative of each report to propose five discernible trigger categories: further requests for money; characteristics of communications; verification checks; an offender's action(s); and being told by a third party. Based on a comprehensive understanding of these five categories, the article advocates for broader messaging approaches to encompass financial literacy and well-being, cyberliteracy and critical thinking skills, cybersecurity practices, and respectful and healthy relationships. Leveraging the use of these wider education and awareness campaigns could improve recognition of romance fraud. Importantly, it is suggested that banks and other financial institutions are in a strong position to focus their efforts on some of these broader messages to effect positive change.

Criminology & Public PolicyVolume 22, Issue 4: Cybercrime and Cybersecurity Nov 2023 Pages 585-894