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VOL. 11, ISSUE 6 (2025)
Digital veils of deception: AI-enabled money laundering and the rise of white-collar cyber fraud
Authors
Monika Rani, Dr. Sameer Kumar Dwivedi
Abstract
The convergence of artificial intelligence (AI) and financial
technology has catalyzed a new wave of white-collar cybercrime, transforming
conventional fraud and money laundering tactics into highly sophisticated
digital operations. This paper investigates the rise of AI-enabled money
laundering and its integration with broader white-collar cyber fraud schemes,
particularly in the context of globalized finance and digital currencies. It
outlines how AI technologies—ranging from machine learning algorithms to
automated bots—have been weaponized to manipulate, conceal, and transfer
illicit funds with unprecedented efficiency, often evading traditional
regulatory frameworks. By analyzing the mechanisms through which AI facilitates
the stages of money laundering—placement, layering, and integration—the study
reveals how digital ecosystems, including cryptocurrencies and decentralized
finance (DeFi), are exploited to obfuscate financial trails. It also examines
notable case studies and legal precedents to illustrate the challenges facing
international law enforcement and financial institutions. The paper further
explores current legal frameworks and highlights the inadequacy of existing
compliance systems in countering such rapidly evolving threats. In response, it
proposes a strategic shift toward intelligent compliance mechanisms, policy
reform, and international cooperation that leverage RegTech and AI-driven
surveillance tools. The findings underscore the need for a globally
synchronized approach that not only mitigates the risks posed by AI-enabled
laundering but also anticipates emerging fraud vectors in the era of digital
finance. This research contributes to the critical discourse on cybersecurity,
regulatory lag, and the ethics of algorithmic opacity in financial governance.
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Pages:34-39
How to cite this article:
Monika Rani, Dr. Sameer Kumar Dwivedi "Digital veils of deception: AI-enabled money laundering and the rise of white-collar cyber fraud". International Journal of Law, Vol 11, Issue 6, 2025, Pages 34-39
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