Thursday, January 12, 2006

Money Laundering via Gift Cards

Reported today in the NY Times:

Gift Cards Are Increasingly Used to Launder Money

"As drug lords, financiers of terrorism and other money launderers have found it increasingly difficult to move money through the traditional banking system in the United States, they are on the lookout for alternatives, federal officials said. The report examined methods criminals use to move dirty money."

"Prepaid cards "are an emerging cash alternative for both legitimate consumers and money launderers alike."

I don't think I'll try to sell or trade my TJ Maxx card on EBay...


Anonymous said...

That's silly. You didn't buy your cards with illegitimate cash, and I doubt people are laundering money by buying gift cards on eBay. Much easier to buy gift cards in a store with cash. Buying them on eBay requires a registered address, verification, etc - too much of a trail.

Anonymous said...

im thinking thats not the point being made. the point was that one could buy a gift card with ill gotten gains. then by selling them on ebay via paypal would result in cleaned money. there may be some merit to the thought but it wouldnt seem practical.