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Crypto Journalist
Veronika Rinecker
Crypto Journalist
Veronika Rinecker
Europol released a report on Tuesday detailing how advanced technologies—including artificial intelligence (AI), blockchain technology, and quantum computing—have fueled organized crime across the European Union.
New Report! #SOCTA25: The changing DNA of serious and organised crime.
This is one of the most thorough analyses on the threats of serious and organised crime, designed to assist decision-makers in the prioritisation of threats in Europe.
Read: https://t.co/Riuuswlfvi
— Europol (@Europol) March 18, 2025
The report described how organized crime has eroded trust in the EU’s economy, rule of law, and society by generating illicit profits and spreading violence.
It also noted that criminal activities have increasingly been used to support the political objectives of foreign actors, posing additional threats to stability.
AI and Blockchain Lower Barriers for Criminals
Europol reported that organized crime networks now primarily operate online, using the internet both as a tool and as a target for data theft, often eliminating the need for physical presence.
Criminal groups increasingly rely on AI-driven systems, including large language models (LLMs) and generative AI, to simplify digital crimes.
They use generative AI to craft multilingual phishing messages, target victims globally, develop advanced malware, and produce child sexual abuse material.
Europol also noted that criminals create realistic synthetic media—including deepfakes and voice cloning—to carry out fraud, extortion, and identity theft schemes.
Alongside AI, another emerging threat stems from quantum computing.
Europol warned that criminal groups have adopted a “store now, decrypt later” strategy, collecting encrypted data with plans to decrypt it once quantum computing capabilities advance, potentially compromising sensitive information.
Blockchain and Cryptocurrency Exploited for Illicit Finance
Criminal networks also exploit blockchain technology and cryptocurrencies to facilitate payments and launder illicit proceeds, often relying on decentralized systems and unregulated exchanges.
According to the report, cryptocurrencies are used in crimes beyond cybercrime, including drug trafficking and migrant smuggling.
Activities such as cryptocurrency theft, NFT theft, and cryptojacking have become widespread. Criminals also use privacy coins, chain hopping, and decentralized finance (DeFi) exchanges to launder money.
Europol stated: “Virtual currencies are increasingly used to launder money, offering borderless, instant transactions when layered with privacy-enhancing technologies.
While cash still plays a major role, the rise of cryptocurrencies, DeFi platforms, and AI-driven automation has reshaped illicit finance by providing a digital shield to conceal laundering.”
Criminals further leverage cryptocurrencies, DeFi platforms, and AI-driven automation to mask transactions and evade detection.
Europol cited the takedown of ChipMixer, an unlicensed cryptocurrency mixer used to launder billions of euros in crypto assets, as a recent example.
New Technologies Aid Sanctions Evasion Through Blockchain
Europol warned that criminal groups have turned to new technologies to bypass sanctions, particularly amid the war in Ukraine.
Networks utilize encrypted communications, anonymized financial transactions, and blockchain to circumvent trade restrictions.
The agency mentioned the arrest of individuals involved in exporting military-grade goods to Russia in violation of EU sanctions, showing how sanctions evasion is linked to the proliferation of strategic goods.
Europol analysts believe that sophisticated money laundering methods tied to sanctions evasion—often based on complex ownership structures—are expected to become more common.
These goods are now increasingly being obtained through intermediary countries acting as transit points, with West and Central Asia playing a key role in this process.
Stricter sanctions and growing demand for strategic goods among sanctioned nations have accelerated this trend, according to Europol.
This article first appeared at News
