Write Althea and Asclepius, LUDCI.eu Editorial Team
UNICEF describes trafficked children as “recruited, transported, transferred, harboured or received for the purpose of exploitation”. These children are forced into and threatened to undertake all sorts of activities, such as begging, pornography, manual labour, working in sex houses – all troubling images for the imagination of a human being with the slightest common sense and emotional intelligence.
Unlike what comes to mind from any books or movies that we have all seen, child trafficking is not some under-ground activity carried out in undeveloped countries. It is a global issue that has no country, gender, or race. It is a plague that evolves and grows stronger by the minute, with trafficking rings using technology, and the internet to expand their business beyond borders.
But the same technology can be used to catch the predators on the spot through rapid automation of cash transactions – one of the most significant technological development the world has seen in the financial sector or in other words, the Fintech Industry. Because of this development, the financial sector has seen unprecedented changes in how money is handled and processed. Many economies have developed cashless policies. Financial transactions are easier to manage and criminal activities can be caught much easier than before.
For this reason, Fintechs would need to join forces to alert and warn of such activities, especially when it comes to human trafficking activities. Unfortunately, the case is different. A report in 2018 says that between 2011 and 2018, the turnover from human trafficking activities rose from $32 billion to an excess of $150 billion.
Asides from drug dealing and weapons merchantry, human trafficking is the most lucrative crime in the world. All this money is processed somehow. The fact that more than 70% of all financial transactions leave some sort of digital trace and analytical tools have advanced greatly, this presents an opportunity to align forces with law enforcement agencies to stop the proliferation of child-trafficking.
Following the money is key. Tracking the transfers and the organisations behind is a must. Most trafficking rings hide very deep within seemingly legitimate organisations to carry out their activities. However, one thing is clear – money followed will trace back to the criminals. This is where is technological might of the fintech industry comes into play.
Corporate organisations with this industry can dedicate some, if not all, of their Corporate Social Responsibility (CSR) efforts to developing intelligent systems that track and identify cash flows associated with child trafficking. The Fintech industry is wealthy enough that if only a third of its financial spending on CSR were to be dedicated to the cause of ending child trafficking, we could see immediate results in a very short time.
Asides from financial contributions, the fintech industry is uniquely poised to provide data that can greatly advance the battle against child trafficking. For this to make a significant impact, some form of policy should mandate the sharing of financial information for this cause. Between financial institutions, most of the world’s digital financial information can be accessed. Cutting edge advancement is being made in the field of data analysis with the deployment of more and more sophisticated AI systems. Hence, it is just a matter of training, persistence, and willingness that these systems are enabled to identify certain patterns associated with trafficking and letting them feast on the world’s financial data.
Aside from aggregating financial data and making them available for crime detection, the industry could also build in measures tracking irregular activities in real-time. In fact, the entire industry can deploy technologies that immediately flags irregular financial activities. Many emerging technologies such as blockchain, biometric identity management among others have the potential to make identification of cash flow associated with child trafficking faster and efficient.
Some giant fintech companies like PayPal have joined the fight against child trafficking by making important partnerships. No doubt, their impact is being felt but it could be amplified if more companies within the industry got into the fight. More companies can boost their social responsibility practice to collaborate with and fund to eradicate this crime. After all, no child is immune. Today is someone else’s child. Tomorrow is yours.
Conclusion:
Make no mistake, slavery is not a barbaric practice from the history books. Over 40 million people are victims of modern human slavery with a high percentage being children. Sadly enough, this number increases by the minute – to a global corporation. A corporation that cannot grow any longer. The fintech industry can battle the monster eye to eye and put a stop to it.
And this is our call to take this fight against child-trafficking seriously. For those companies that have made efforts, they are enjoined to increase their efforts in this direction. And for those who have not been involved in this fight, we ask that they get off the fence, primarily acknowledge its seriousness, and start contributing as much as they can.
