Washington is pressing the banking sector to strengthen its defenses against international criminal networks orchestrating sophisticated fraud operations. The Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued a directive to financial institutions and published findings from an extensive analysis covering more than 33,000 cyber fraud reports submitted between September 2023 and December 2025.

The analysis documents approximately $12.7 billion in losses tied to cryptocurrency investment scams affecting victims across all 50 states and U.S. territories. According to Gene Lange, a Treasury Department official, "The transnational criminal organizations behind these scams exploit both emerging technologies and human vulnerabilities, resulting in devastating financial losses for innocent American victims."

Data compiled from roughly 1,300 financial institutions shows connections to a 2023 Treasury warning about so-called pig butchering scams. FinCEN's research indicates that suspected scam activity is accelerating as criminal operations extend beyond established centers in Myanmar, Cambodia and Laos. Monthly report submissions climbed nearly 11% compared to the previous month, with financial institutions typically observing only isolated portions of each scam operation.

Perpetrators employ shifting identities—romantic interests, investment professionals, financial consultants—to manipulate targets into transferring funds via conventional banking channels or digital currencies. Contrary to common assumptions, adults aged 60 and older represented approximately 25% of reported victims, suggesting that younger demographics face comparable vulnerability.

Where the money flows

Digital asset platforms identified roughly $5.5 billion in suspected fraudulent activity. Conventional financial institutions documented approximately $6.4 billion in potential fraud, frequently detecting schemes when customers transferred funds to cryptocurrency exchanges for digital asset purchases or wired money to accounts connected to scammers, often under the pretense of cryptocurrency investments.

The report documents instances where victims pursued loans and second mortgages as part of scam participation. Financial firms also recorded thousands of cases involving liquidated investment portfolios, attempted wire transfers to scammer-controlled beneficiaries, and other desperate financial maneuvers.

One documented case involved an older adult who transferred nearly $640,000 from her retirement savings to a suspected scammer after meeting someone on social media who directed her to invest in what turned out to be a fictitious digital asset company. Another victim withdrew almost $150,000 from retirement funds, obtained a personal loan, and established home equity lines of credit to send money to a scammer posing as a romantic partner promoting a business opportunity. The victim had been rejected for personal loans twice before finally securing financing.

Cryptocurrency patterns and detection

Reports predominantly referenced Ethereum, Tether (USDT), and USD Coin (USDC), though at least 18 additional cryptocurrencies appeared in the filings. FinCEN observed that scammers consistently converted stolen assets into USDT.

Most victims recognized the fraud only when requested to pay recovery fees. Investigators also identified cases where scammers redeployed their tactics by posing as asset recovery services to extract additional funds from already-victimized individuals.

Government enforcement action

Shortly after releasing the report, federal authorities moved against Xinbi Guarantee, a prominent Telegram-based marketplace that facilitated money laundering for scammers. According to Ari Redbord, global head of policy at blockchain analysis firm TRM Labs, Xinbi became the primary platform for Southeast Asian scam operations following the earlier U.S. shutdown of Chinese platform Huione. Over $36 billion passed through Xinbi's network, Redbord noted.

Source: The Record