In a recent investigation, we uncovered how pig-butchering scammers in Southeast Asia are using U.S. banks — including big names such as Chase, Bank of America and Wells Fargo — to help move tens of billions of dollars of stolen money. Here’s what you need to know:
While a huge portion of the money stolen by pig-butchering scammers is taken via cryptocurrencies, scammers also like to use bank accounts to collect fraudulent wire transfers from their targets. Scammers in Cambodia, for example, can find and rent a U.S. bank account on Telegram *within minutes*, then use the account to move victims’ cash into crypto. As required by law, U.S. banks have a critical role as gatekeepers to prevent criminals from opening these accounts and engaging in money laundering. But it is up to banks to design their scam-detection programs, and the regulations don’t even require the programs to be effective.
The owners and managers of these “rentable” bank accounts are extremely good at sidestepping banks’ anti-money-laundering protocols, and they exploit the fact that banks are reluctant to share suspicious bank account information with each other.
Against steep odds, one victim was able to get some of his money back. |
Telegram has said in a statement that it “expressly forbids money laundering, scams and fraud and such content is immediately removed whenever discovered.” The American Bankers Association acknowledged that “bad actors can sometimes get through” them, but said that other industries like telecommunications providers and social media platforms need to do more to fight fraud. A complete list of how individual banks have responded to our questions can be found here.
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