INSIGHT: Fraud and crypto top EU financial crime threats, EFIPPP survey finds

By CARLO BOFFA, EU Correspondent

Fraud and cryptocurrencies pose the biggest threats to the integrity of the EU’s financial system, according to a survey by Europe’s first public-private financial intelligence initiative.

The Europol Financial Intelligence Public-Private Partnership (EFIPPP) runs the “Threat Radar”annual survey to identify the biggest risks facing European countries, helping regulators and national authorities compile their own national risk assessments.

More than 40% of respondents ranked fraud as the top threat among predicate offences, ahead of drug trafficking and organised crime. The share more than doubled from last year’s survey. The Financial Action Task Force has estimated that fraud costs the global economy about $500 billion.

Cryptocurrencies were named by 38% of respondents as the sector most at risk of money laundering and terrorism financing. It was the first year the survey offered virtual assets as an option.

Respondents cited lack of transparency as the main concern. Criminals often use tumblers and mixers that pool assets from multiple holders and redistribute them randomly, cutting the money trail. Experts also flagged privacy coins and stablecoins as high-risk tools.