Towards Definitive Categories for Online Video Game Money Laundering

Purpose — This paper aims to investigate how best to classify money laundering through online video games (i.e. virtual laundering). Currently, there is no taxonomy available 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 security controls. As such, efforts to prevent and reduce virtual laundering incidence 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 locale of the illicit proceeds provides the appropriate framing within which to classify instances of virtual laundering. Thus, the act of classification becomes an ontological endeavor, rather than an attempt at elucidating an inherently varied process (as is common of the placement, layering and integration model). Findings — 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 locale of the illicit proceeds provides the appropriate framing within which to classify instances of virtual laundering. Thus, the act of classification becomes an ontological endeavor, rather than an attempt at elucidating an inherently varied process (as is common of the placement, layering and integration model). Originality/value — To the best of the authors’ knowledge, this is the first taxonomy available in the knowledge base that systematically classifies instances of virtual laundering. The taxonomy is available for scholars and practitioners to use and apply when discussing how to regulate and formulate legislation, policies and appropriate security controls.