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Financial cybercrime in the Islamic Finance Metaverse

Year 2022, Volume 2, Issue 2, 56 - 61, 31.12.2022

Abstract

Financial cybercrime in the metaverse has become increasingly more significant for authorities, corporations, and individuals to address, requiring new regulatory and compliance frameworks, as well as novel cybersecurity mechanisms in order to prevent these crimes. Financial cybercrimes in the metaverse have increased in the last years significantly, with either the massive stealing of cryptocurrencies from exchanges or the sale of fake or dubious NFT and other financial products that have lost significant value within a short period of time. Cybercrimes in the metaverse have taken place at significant scales and given the infancy of regulations as well as the virtual nature of these activities, only few crimes have been prosecuted. Islamic finance may represent a considerable opportunity for the metaverse via connecting the financial services and instruments to real and virtual assets free of speculation. The article provides several recommendations for regulators to address these cybercrime challenges and how Islamic finance can assist in these cybercrimes.

References

  • E. R. Leukfeldt, A. Lavorgna and E. R. Kleemans, "Organised cybercrime or cybercrime that is organised? An assessment of the conceptualisation of financial cybercrime as organised crime.," European Journal on Criminal Policy and Research, vol. 23, no. 3, pp. 287-300, 2017.
  • J. Nicholls, A. Kuppa and N. A. Le-Khac, "Financial Cybercrime: A Comprehensive Survey of Deep Learning Approaches to Tackle the Evolving Financial Crime Landscape.," IEEE Access, 2021.
  • E. R. Leukfeldt, E. W. Kruisbergen, E. R. Kleemans and R. A. Roks, "Organized financial cybercrime: Criminal cooperation, logistic bottlenecks, and money flows.," The Palgrave Handbook of International Cybercrime and Cyberdeviance, pp. 961-980, 2020.
  • J. M. Karpoff, "The future of financial fraud.," Journal of Corporate Finance, vol. 66, p. 101694, 2021.
  • S. Hasham, S. Joshi and D. Mikkelsen, "Financial crime and fraud in the age of cybersecurity.," McKinsey & Company, 2019.
  • S. Kwon, J. Jeong and T. Shon, "Digital forensic readiness for financial network.," in 2019 International Conference on Platform Technology and Service (PlatCon), 2019.
  • S. Y. K. Wang and M. L. Hsieh, "The ATM Hacking Case," in Digital Robbery, Springer, 2021, pp. 15-32.
  • S. Varga, J. Brynielsson and U. Franke, "Cyber-threat perception and risk management in the Swedish financial sector.," Computers & Security, p. 102239, 2021.
  • O. A. Erin, A. D. Kolawole and A. O. Noah, "Risk governance and cybercrime: the hierarchical regression approach.," Future Business Journal, vol. 6, pp. 1-15, 2020.
  • S. M. Karsh, "Emerging Innovation Risk Management in Financial Institutions of United States.," Economics and Business Quarterly Reviews, vol. 4, no. 2, 2021.
  • S.-M. Park and Y.-G. Kim, "A Metaverse: taxonomy, components, applications, and open challenges.," IEEE Access, 2022.
  • N. G. Narin, "A Content Analysis of the Metaverse Articles," Journal of Metaverse , pp. 17-24, 2021.
  • K. B. Wilson, A. Karg and H. Ghaderi, ". Prospecting non-fungible tokens in the digital economy: Stakeholders and ecosystem, risk and opportunity.," Business Horizons, 2021.
  • I. Wohlgenannt, A. Simons and S. Stieglitz, "Virtual reality," Business & Information Systems Engineering, pp. 455-461, 2020.
  • E. Reddy and A. Minnaar, "Cryptocurrency: A tool and target for cybercrime.," Acta Criminologica: African Journal of Criminology & Victimology, vol. 31, no. 3, pp. 71-92, 2018.
  • B. Sivathanu, " Adoption of digital payment systems in the era of demonetization in India: An empirical study.," Journal of Science and Technology Policy Management, 2018.
  • A. Trozze, J. Kamps, E. A. Akartuna, F. J. Hetzel, B. Kleinberg, T. Davies and S. D. Johnson, "Cryptocurrencies and future financial crime.," Crime Science, vol. 11, no. 1, pp. 1-35, 2022.
  • F. M. Teichmann and M. C. Falker, "Cryptocurrencies and financial crime: solutions from Liechtenstein.," Journal of Money Laundering Control, 2020.
  • W. Ronhaar, W. B. Zehner and R. Langhorne, "Zero Identity—The New Cybersecurity Paradigm," Marketing of Scientific and Research Organizations, vol. 42, no. 4, pp. 97-109, 2021.
  • A. Shah and D. Chudasama, "Investigating Various Approaches and Ways to Detect Cybercrime.," Journal of Network Security, vol. 9, no. 2, pp. 12-20, 2021.
  • M. Ayub, Understanding Islamic Finance, Chichester: John Wiley & Sons, 2007.
  • M. K. Hassan and R. N. Kayed, "The global financial crisis, risk management and social justice in Islamic finance.," Risk Management and Social Justice in Islamic Finance, 2009.
  • H. Mohamed and H. Ali, Blockchain, Fintech, and Islamic finance: Building the future in the new Islamic digital economy., Berlin: Walter de Gruyter Gmbh & Co KG, 2018.
  • U. Oseni and N. Ali, Fintech in Islamic finance, Routledge, 2019.
  • C. Paldi, "Understanding riba and gharar in Islamic finance.," Journal of Islamic Banking and Finance, vol. 2, no. 1, pp. 249-259, 2014.

Year 2022, Volume 2, Issue 2, 56 - 61, 31.12.2022

Abstract

References

  • E. R. Leukfeldt, A. Lavorgna and E. R. Kleemans, "Organised cybercrime or cybercrime that is organised? An assessment of the conceptualisation of financial cybercrime as organised crime.," European Journal on Criminal Policy and Research, vol. 23, no. 3, pp. 287-300, 2017.
  • J. Nicholls, A. Kuppa and N. A. Le-Khac, "Financial Cybercrime: A Comprehensive Survey of Deep Learning Approaches to Tackle the Evolving Financial Crime Landscape.," IEEE Access, 2021.
  • E. R. Leukfeldt, E. W. Kruisbergen, E. R. Kleemans and R. A. Roks, "Organized financial cybercrime: Criminal cooperation, logistic bottlenecks, and money flows.," The Palgrave Handbook of International Cybercrime and Cyberdeviance, pp. 961-980, 2020.
  • J. M. Karpoff, "The future of financial fraud.," Journal of Corporate Finance, vol. 66, p. 101694, 2021.
  • S. Hasham, S. Joshi and D. Mikkelsen, "Financial crime and fraud in the age of cybersecurity.," McKinsey & Company, 2019.
  • S. Kwon, J. Jeong and T. Shon, "Digital forensic readiness for financial network.," in 2019 International Conference on Platform Technology and Service (PlatCon), 2019.
  • S. Y. K. Wang and M. L. Hsieh, "The ATM Hacking Case," in Digital Robbery, Springer, 2021, pp. 15-32.
  • S. Varga, J. Brynielsson and U. Franke, "Cyber-threat perception and risk management in the Swedish financial sector.," Computers & Security, p. 102239, 2021.
  • O. A. Erin, A. D. Kolawole and A. O. Noah, "Risk governance and cybercrime: the hierarchical regression approach.," Future Business Journal, vol. 6, pp. 1-15, 2020.
  • S. M. Karsh, "Emerging Innovation Risk Management in Financial Institutions of United States.," Economics and Business Quarterly Reviews, vol. 4, no. 2, 2021.
  • S.-M. Park and Y.-G. Kim, "A Metaverse: taxonomy, components, applications, and open challenges.," IEEE Access, 2022.
  • N. G. Narin, "A Content Analysis of the Metaverse Articles," Journal of Metaverse , pp. 17-24, 2021.
  • K. B. Wilson, A. Karg and H. Ghaderi, ". Prospecting non-fungible tokens in the digital economy: Stakeholders and ecosystem, risk and opportunity.," Business Horizons, 2021.
  • I. Wohlgenannt, A. Simons and S. Stieglitz, "Virtual reality," Business & Information Systems Engineering, pp. 455-461, 2020.
  • E. Reddy and A. Minnaar, "Cryptocurrency: A tool and target for cybercrime.," Acta Criminologica: African Journal of Criminology & Victimology, vol. 31, no. 3, pp. 71-92, 2018.
  • B. Sivathanu, " Adoption of digital payment systems in the era of demonetization in India: An empirical study.," Journal of Science and Technology Policy Management, 2018.
  • A. Trozze, J. Kamps, E. A. Akartuna, F. J. Hetzel, B. Kleinberg, T. Davies and S. D. Johnson, "Cryptocurrencies and future financial crime.," Crime Science, vol. 11, no. 1, pp. 1-35, 2022.
  • F. M. Teichmann and M. C. Falker, "Cryptocurrencies and financial crime: solutions from Liechtenstein.," Journal of Money Laundering Control, 2020.
  • W. Ronhaar, W. B. Zehner and R. Langhorne, "Zero Identity—The New Cybersecurity Paradigm," Marketing of Scientific and Research Organizations, vol. 42, no. 4, pp. 97-109, 2021.
  • A. Shah and D. Chudasama, "Investigating Various Approaches and Ways to Detect Cybercrime.," Journal of Network Security, vol. 9, no. 2, pp. 12-20, 2021.
  • M. Ayub, Understanding Islamic Finance, Chichester: John Wiley & Sons, 2007.
  • M. K. Hassan and R. N. Kayed, "The global financial crisis, risk management and social justice in Islamic finance.," Risk Management and Social Justice in Islamic Finance, 2009.
  • H. Mohamed and H. Ali, Blockchain, Fintech, and Islamic finance: Building the future in the new Islamic digital economy., Berlin: Walter de Gruyter Gmbh & Co KG, 2018.
  • U. Oseni and N. Ali, Fintech in Islamic finance, Routledge, 2019.
  • C. Paldi, "Understanding riba and gharar in Islamic finance.," Journal of Islamic Banking and Finance, vol. 2, no. 1, pp. 249-259, 2014.

Details

Primary Language English
Subjects Computer Science, Interdisciplinary Application
Journal Section Reviews
Authors

Klemens KATTERBAUER> (Primary Author)
Euclid University
0000-0001-5513-4418
Austria


Hassan SYED This is me
Euclid University
0000-0001-7641-5198
Central African Republic


Laurent CLEENEWERCK This is me
Euclid University
0000-0002-9267-0428
Central African Republic

Publication Date December 31, 2022
Application Date April 27, 2022
Acceptance Date July 25, 2022
Published in Issue Year 2022, Volume 2, Issue 2

Cite

APA Katterbauer, K. , Syed, H. & Cleenewerck, L. (2022). Financial cybercrime in the Islamic Finance Metaverse . Journal of Metaverse , 2 (2) , 56-61 . Retrieved from https://dergipark.org.tr/en/pub/jmv/issue/71114/1108783