In this month's regular column, edited by ESB AML Graduates, Dr. Mirco Di Lorenzo offers his perspective on the phenomenon of anti-money laundering on social media.

The number of social media users has grown due to digitalization, internet usage, and access to smart devices. In addition to the revolution brought about by technological advances, the spread of the coronavirus has also been a major driving force behind this extraordinary expansion.

Users view social media platforms as trustworthy and are increasingly spending time on them, using social networking sites for purposes other than making friends.

These purposes include advertising their businesses, selling goods, and seeking employment. Consequently, the number of financial crimes committed via social media is rapidly increasing, with demands for monetization for every like or gift given on live streams.

The social media industry, like many others, has become a hotbed of illegal activity. Criminals are employing increasingly sophisticated strategies: individuals and businesses are placed in a precarious position due to the risk of falling victim to scammers or being implicated in money laundering schemes.

For example, in Turkey, social media platforms are quite common, with millions of subscribers, and can be widely used for fraudulent activities. The Financial Crimes Investigation Board (MASAK) is currently investigating the short-form video hosting business due to money laundering allegations. According to a preliminary research Some live streamers have used third-party “donations” or even fake accounts to solicit money for their real accounts in an attempt to increase the number of donors.

Another finding is the growing concern about accounts with a small number of followers aiming to raise a large amount of money.eAccording to the Financial Crimes Investigation Board, these are ploys to attract money with stolen credit cards and promote money laundering.

These are just a few ideas: this phenomenon is growing rapidly and must be addressed decisively.

It is the social responsibility and legal obligation of platforms to implement rigorous identity verification systems and automated anti-money laundering screening services to identify and remove money launderers from the digital ecosystem.