Scammers Exploit U.S. Banks For Laundering Funds

Foreign crime syndicates open or rent U.S. bank accounts—often using fake business details—to launder proceeds from pig-butchering scams worth tens of billions annually.

Scammers use Telegram channels to advertise and acquire control of legitimate bank accounts, which they use to collect victims’ wire transfers and convert funds into cryptocurrency.

Inconsistent know-your-customer checks, voluntary information sharing among banks, and banks’ reluctance to slow business enable fraudsters to bypass safeguards.

Victims face challenges recovering stolen funds; in the U.S. banks rarely reimburse scam losses and victims often must sue to freeze and reclaim their money.