Towards definitive categories for online video game money laundering
| Date | 29 April 2024 |
| Pages | 1051-1062 |
| DOI | https://doi.org/10.1108/JMLC-12-2023-0193 |
| Published date | 29 April 2024 |
| Author | James Higgs,Stephen Flowerday |
Towards definitive categories
for online video game
money laundering
James Higgs and Stephen Flowerday
Department of Cyber Studies, College of Engineering and Natural Sciences,
The University of Tulsa, Tulsa, Oklahoma, USA
Abstract
Purpose –This paper aims to investigate how best to classify money laundering through online video
games (i.e.virtual laundering). Currently, there is no taxonomyavailable for scholars and practitioners to refer
to when discussing money laundering through online video games. Without a well-defined taxonomy it
becomes difficult to reason through, formulate and implement effective regulatory measures, policies and
securitycontrols. As such, efforts to prevent and reduce virtual launderingincidence rates are hampered.
Design/methodology/approach –This paper proposes three mutually exclusive virtual laundering
categorizations. However, instead of fixating on the processes undergirding individual instances of virtual
laundering, it is argued that focusing on the initial localeof the illicit proceeds provides the appropriate
framing within which to classify instances of virtual laundering. Thus, the act of classification becomes an
ontologicalendeavour, rather than an attempt at elucidatingan inherently varied process (as is commonof the
placement,layering and integration model).
Findings –A taxonomy is proposed that details three core virtuallaundering processes. It is demonstrated how
different virtual laundering categories have varied levels of associated risk, a nd thus, demand unique interventions.
Originality/value –To the best of the authors’knowledge, this is the first taxonomy available in the
knowledge base that systematicallyclassifies instances of virtual laundering. The taxonomyis available for
scholars and practitioners to use and apply when discussing how to regulate and formulate legislation,
policiesand appropriate security controls.
Keywords Cybercrime, Virtual laundering, Online video gaming, Cyberlaundering, Financial crime,
Economic crime, Cybersecurity, Cybertheft, Cyberfraud
Paper type Conceptual paper
1. Introduction
Video games can no longer be viewed as a niche entertainment form. Increasingly, younger
generations –and older, albeit to a lesser extent –prefer spending their available leisure time on
interactive digital experiences characteristic of online video gaming (Westcottet al.,2023).Today,
the video gaming market is valued at more than twice the size of the video streaming market.
Video game market revenue for 2023 was $406.2bn, with a forecast of reaching $6 26.78bn by 2028
(i.e. 54.31% growth) (Clement, 2023b). Microtransactions, the sale of in-game virtual assets and
services, has become the de facto monetization strategy for the video game industry (Bradshaw,
2023;King et al.,2019;Lemmens, 2022;Zendle et al.,2020). Microtransactions are widely
implemented across both freemium-inspired business models (e.g. Fortnite) an dt raditional pay-to-
play business models (e.g. EA FC Ultimate Teams, World of Warcraft) (King et al., 2019).
The authors acknowledge support for this research from The University of Tulsa Cyber Fellows.
Online video
game money
laundering
1051
Journalof Money Laundering
Control
Vol.27 No. 6, 2024
pp. 1051-1062
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-12-2023-0193
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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