Global Cybercrime: IRS Is Sending Four Investigators Across the World to Fight Cybercrime

Starting this summer, the IRS is intending to deploy four specialized cybercrime investigators to Australia, Singapore, Colombia, and Germany. This move indicates a substantial expansion in the agency’s worldwide endeavors to combat cybercrimes such as those that involve decentralized finance, cryptocurrency, and crypto laundering services.

Recently, the Criminal Investigation (IRS-CI) branch of the IRS has played a crucial role in investigating dark web crimes as part of international operations. These operations include shutting down the AlphaBay drug and hacking services marketplace and arresting its administrator, busting the biggest child abuse website on the internet, and taking down a marketplace for stolen Social Security numbers. Prior to this new initiative, the IRS only had one cyber investigator abroad, based in The Hague, Netherlands, working alongside Europol since 2021.

What Is Cybercrime?

Cybercrime refers to any criminal activity that takes place online. Cybercriminals use various techniques such as hacking, phishing, identity theft, and ransomware attacks to steal sensitive information, money, or other valuable assets from individuals, businesses, or governments.

How the IRS Is Combatting Cybercrime

The IRS is taking proactive steps to combat cybercrime by deploying a team of investigators across the globe to identify and bring cybercriminals to justice. The team will work closely with international law enforcement agencies to track down cybercriminals who are operating across borders.

According to Guy Ficco, the executive director for global operations policy and support for IRS-CI, during the Chain Analysis Links conference on April 4th, the IRS plans to add dedicated cyber attaches to their team in Bogota, Colombia, Frankfurt, Germany, Singapore, and Sydney, Australia. Ficco stated that the benefits of having investigators in The Hague and with Europol have been tangible.

According to IRS spokesperson Carissa Cutrell, the four new positions are part of a pilot program that will run for 120 days, from June to September 2023. The goal of the program is to combat the use of cryptocurrency, decentralized finance, and mixing services in international financial and tax crimes. After the pilot program ends, the IRS will evaluate whether to continue having investigators in the new countries. Cutrell explained that the success of the program will depend on the ability of the investigators to work cooperatively, train foreign law enforcement counterparts, and build leads for criminal investigations.

According to Chris Janczewski, a former special agent in the IRS-CI Cyber Crimes Unit, the expansion of the IRS’s global presence is a crucial step toward improving international investigations. He stated that due to logistical difficulties, it is not always possible for US-based case agents to travel abroad to coordinate with foreign partners, and cyber attachés must act as proxies for the case agent. Janczewski, who is now the head of global investigations at blockchain intelligence firm TRM Labs, led the investigation into the largest dark web child abuse site and emphasized the importance of building professional relationships to obtain informal information in real-time during fast-moving investigations.

Aside from the five cyber investigators, the IRS currently has 11 attaché posts around the world, with the ability to develop leads for both domestic and international investigations with an international nexus. According to the IRS-CI’s 2022 annual report, attachés also provide support and direction for investigations with foreign witnesses or evidence, execution of sensitive investigative activities in collaboration with international partners, and uncovering emerging schemes by facilitators of tax evasion and other financial crimes.

How the Public Can Help the Fight Against Cybercrime

The public can play an important role in the fight against cybercrime. Individuals can take simple steps to protect themselves from cybercriminals, such as using strong passwords, being cautious of suspicious emails, and keeping their software up to date. Additionally, they can report any suspicious activity to law enforcement agencies.

The Future of IRS Efforts to Combat Global Cybercrime

The IRS’s efforts to combat global cybercrime are ongoing, and the agency will continue to invest in technology and personnel to stay ahead of cybercriminals. The agency is also working closely with other government agencies and private companies to develop new strategies to fight cybercrime and protect individuals and businesses from the devastating effects of cyberattacks.