The Dark Side of Tech: How Social Media Became a Playground for Money Launderers
It was bigger than an Ocean’s Eleven-level heist. No explosions, no high-speed chases—just a slow, methodical siphoning of a billion dollars.
In 2015, North Korean hackers infiltrated Bangladesh Bank. But they didn’t move the money until 2016. Why wait? Because they had a bigger problem—where do you stash a billion dollars without raising suspicion?
“Had they not been able to find a route for the money, they wouldn’t have stolen it,” explains cybercrime investigative journalist Geoff White.
This highlights a chilling reality: If we can stop money laundering, we can cripple entire networks of fraud, drug trafficking, and sex crimes that depend on it. In his book Rinsed: From Cartels to Crypto: How the Tech Industry Washes Money for the World’s Deadliest Crooks, White uncovers how technology—often unknowingly—has become a powerful ally in global crime.
The Digital Money Laundering Revolution
From cryptocurrency scams to underground beauty product websites, the landscape of modern money laundering is evolving. Tech companies, social media platforms, and financial startups are inadvertently making it easier than ever to clean dirty money.
Take the case of a group of well-intentioned tech entrepreneurs in Ohio. They thought they were building the future of crypto finance, but their boss had other ideas—using their platform to launder dark web profits.
Then there was Backpage.com, a classified ads site that became notorious for facilitating human trafficking. It wasn’t until forensic accountants followed the money trail that law enforcement shut it down. The takeaway? Every digital transaction leaves fingerprints, but criminals are getting better at wiping them clean.
Social Media’s Role in the Crime Economy
Social media isn’t just for selfies—it’s a recruitment hub for criminals. One of the most common methods used today is smurfing—a term that sounds innocent but is anything but.
Instead of depositing large sums that might trigger red flags, criminals divide their dirty money among hundreds or even thousands of individuals. Each “smurf” deposits small, seemingly innocent amounts into their accounts before funneling them back to the launderers.
The problem? Social media makes recruiting smurfs easy. A single Instagram or Snapchat post promising “quick cash” can entice desperate individuals into becoming unwitting money mules.
Tech Startups: Unwitting Accomplices?
Many tech innovators dream of revolutionizing finance. But in doing so, they often create loopholes that criminals exploit.
“I don’t think many of these companies start out wanting to help criminals,” says White. “But they want to create platforms with minimal regulation—because that’s where you can grow quickly. Unfortunately, that’s also where criminals thrive.”
Take Coin Ninja, a crypto firm whose employees were blindsided when their boss was arrested for running a money laundering operation through his other company, Helix. They had no idea their work was fueling crime on the dark web.
Romance Scams and the Billion-Dollar Fraud Industry
Fraud isn’t just about hacking banks. Romance scams are another massive, organized crime industry—one that has drained over $650 million from victims in the U.S. alone.
Often traced back to Nigeria, these scams go beyond individuals catfishing for cash. They’re part of a sprawling network designed to systematically loot the wealth of unsuspecting victims. Some scammers even justify their crimes as “payback” for Western exploitation of Africa’s resources.
White, who has spent years exposing these fraud rings, describes them as “systemic financial predation” that continues to evolve with technology.
The Face Behind the Crime
Despite his in-depth reporting, White has never given up on one goal—interviewing a North Korean hacker.
“These guys are incredibly intelligent,” he says. “They know how to play our systems against us. I’d love to sit down and hear their side.”
He has also sent multiple letters to convicted money launderer Ghaleb Alaumary, who helped funnel millions for North Korea alongside Instagram influencer-turned-criminal ‘Hushpuppi.’ So far, no response.
Staying Safe in a Digital World
With financial crime more advanced than ever, White remains vigilant. He follows two golden rules:
- Backup everything. Hackers prey on those who lose access to their data.
- Question every message. Phishing emails, fake conference invites, and “urgent” online requests are all weapons in a criminal’s arsenal.
“You don’t get hacked just by receiving a message—you have to interact with it,” he warns. “The best defense is suspicion.”
The Takeaway
The intersection of technology and crime isn’t a glitch—it’s a feature criminals have learned to exploit. Whether it’s smurfing on Snapchat, laundering money through crypto startups, or draining victims through romance scams, tech is reshaping the underworld.
And as long as money needs to be cleaned, criminals will find new ways to wash it—one digital loophole at a time.
