Europol's recent report, Decoding the EU’s Most Threatening Criminal Networks, reveals the growing threat of advanced criminal networks that not only endanger the safety of citizens but also pose significant risks to businesses. These networks exploit the latest digital technologies and are finding increasingly clever methods to carry out their operations. According to the report, 86% of the most dangerous criminal networks even use legal business structures to achieve their goals.
What can businesses do to protect themselves against these complex threats? And what role do data, risk management, and UBOs (Ultimate Beneficial Owners) play in this?
The rise of organized cybercrime
An important finding from the report is the increased professionalization of cybercrime. Criminal networks use digital tools such as ransomware, phishing, and advanced hacking techniques to gain access to sensitive business data. These criminal groups are increasingly operating in internationally organized structures, which enhances their impact and reach.
The report emphasizes that these groups are not only after financial gain but also seek to disrupt markets or sabotage competitors. Businesses face increased risks, such as data theft, operational disruptions, and reputational damage.
UBOs: key figures in financial transparency
In addition to the digital attacks and fraud practices that businesses face, another important aspect in combating criminal networks is mapping UBOs. UBOs, or Ultimate Beneficial Owners of a company, are individuals who have control over an organization through ownership or other governing structures. Criminal networks often exploit complex business structures to hide their illegal activities. By using seemingly legitimate companies, they are able to launder money or carry out fraudulent transactions.
Interesting read: Everything about UBOs
Identifying the right UBOs is therefore crucial to understanding the true intentions of a company or business partner. By monitoring UBOs, businesses can prevent engaging with entities that have ties to criminal networks.
How can businesses protect themselves?
As a business, it helps to be proactive to guard against the threat. This starts with a holistic risk management plan that includes both digital security and financial transparency. By deploying effective data tools, companies can not only monitor suspicious activity within their systems, but also thoroughly screen their business relationships and partners.
Interesting read: How do you research a company's reliability before doing business?
The importance of data and UBO monitoring for Risk Management
Data plays a crucial role in identifying potential risks. By investigating business partners and their UBOs, companies can gain insight into who is truly behind an organization. This is essential in an era where criminal networks increasingly use offshore entities or complex ownership structures to conceal their tracks.
Tools can be invaluable for this. Tools like indueD provide businesses with access to comprehensive data sources and analytical tools, enabling companies to understand the ownership structures of their business partners and detect potential risks early on. By closely monitoring UBOs, companies can swiftly identify suspicious transactions or entities before they pose a threat.
Interesting read: UBO monitoring: a boost in efficiency for your compliance process
Data solutions
With tools, companies can not only identify suspicious financial flows but also conduct in-depth background checks on both new and existing business partners. By mapping out UBO structures, organizations can reveal the true owners and ultimate decision-makers within a company. This helps in identifying potential links to criminal networks and minimizes the risk of inadvertently doing business with dubious individuals.
Managing the threat of criminal networks
The Europol report highlights the growing threat of complex criminal networks in Europe and their ability to infiltrate business structures. For companies, it is essential not only to strengthen their digital security but also to ensure financial transparency by carefully monitoring UBOs. This helps to reveal the true nature of business partners and prevents companies from unintentionally becoming involved in criminal activities.
Altares' solutions provide the necessary tools to optimize risk management by leveraging comprehensive data analysis and UBO monitoring. In an increasingly complex business environment, this is crucial for enhancing resilience and staying ahead of criminal networks.
Security and insight into UBOs are no longer just a legal requirement but a strategic necessity for companies seeking to protect their reputation and operations.
