The U.S. Treasury's Financial Crimes Enforcement Network identified $12.7 billion in suspected digital asset investment scam activity through analysis of nearly 34,000 bank filings, releasing an alert Wednesday directing financial institutions to heighten scrutiny of suspicious transactions.
The schemes—known as "pig butchering," "romance baiting," and "cryptocurrency confidence schemes"—rely on fake personas to establish trust before social engineering victims, predominantly American citizens, into transferring funds to fraudulent digital asset investments. Transnational criminal organizations based largely in Southeast Asia operate industrial-scale scam compounds with vast networks of actors facilitating the illicit activity.
Operators obscure transactions through "guarantee marketplaces" and employ professional money launderers to move proceeds through the financial system. Bank Secrecy Act reports show rising suspected scam activity.
Gene Lange, performing duties as Under Secretary for Terrorism and Financial Intelligence, called the scams "one of the most significant fraud threats facing Americans today," citing criminals' exploitation of emerging technologies and human vulnerabilities that result in devastating financial losses.
FinCEN's Rapid Response Program enables swift intelligence sharing with foreign financial intelligence units, and the agency encourages foreign authorities to use legal and regulatory frameworks to halt fraudulent transactions and repatriate stolen funds.
Victims of cyber-enabled fraud should contact their financial institution immediately and file complaints with the FBI's Internet Crime Complaint Center or the nearest U.S. Secret Service field office.
