The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) has issued an alert to financial institutions, urging increased vigilance in identifying and reporting cyber fraud schemes, particularly those originating from overseas scam centers. This directive follows a comprehensive study revealing that nearly $13 billion has been stolen from Americans in cryptocurrency investment scams across all 50 states and U.S. territories between September 2023 and December 2025.
The study, based on over 33,000 cyber fraud incident reports submitted by approximately 1,300 financial institutions, highlights the escalating rate of suspected scam activity. FinCEN observed an almost 11% month-over-month increase in reports, indicating the expanding reach of these schemes beyond their initial hubs in Myanmar, Cambodia, and Laos. This alert builds upon a previous Treasury warning issued in 2023 concerning "pig butchering" scams.
Transnational criminal organizations are exploiting both emerging technologies and human vulnerabilities, leading to devastating financial losses for victims. Scammers employ various personas, from romantic partners to trusted financial advisors, to persuade individuals into transferring funds, often through traditional bank transfers or cryptocurrency. While adults over 60 accounted for about 25% of all reports, the study suggests that other age demographics are being scammed at similar rates.
Cryptocurrency firms identified approximately $5.5 billion in suspected scam activity, while traditional banks reported about $6.4 billion in potential fraud. Banks frequently detected these schemes when victims sent funds to digital asset platforms to purchase cryptocurrencies or when wire transfers were sent to scam-affiliated beneficiaries, often referencing digital asset investments.
Victims have been observed taking drastic measures, including applying for loans and second mortgages, liquidating investment accounts, and attempting wire transfers to scammer-affiliated accounts. One case involved an older adult victim who transferred nearly $640,000 from her retirement fund to a suspected scammer after meeting an individual on social media who instructed her to invest in a fictitious digital asset company. Another victim withdrew almost $150,000 from his retirement account, secured a personal loan, and utilized lines of credit on his home to send funds to a scammer, believing he was investing in a venture promoted by a digital romantic partner.
Most reports indicated the use of cryptocurrencies such as Ethereum, Tether (USDT), and USD Coin (USDC), with at least 18 other coins also appearing in the filings. FinCEN noted that scammers almost invariably converted stolen funds into USDT. Victims typically realized they were part of a scam only when they were asked to pay a fee to retrieve their supposed returns. Investigators also uncovered instances where scammers posed as "asset recovery services" to defraud victims a second time.
Days after the report's release, the U.S. government took action against Xinbi Guarantee, a Telegram-based illicit marketplace. Xinbi Guarantee was sanctioned for its role in laundering billions of dollars for scammers, becoming a primary platform for Southeast Asian scam compounds following the U.S. takedown of the Chinese platform Huione. Over $36 billion was reportedly laundered through Xinbi.
