On September 3, 2026, the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) announced that it has linked nearly $12.7 billion in financial activity to suspected digital asset investment scams operated by overseas fraud centers. Often referred to as “pig butchering,” “romance baiting,” or “cryptocurrency confidence schemes,” these scams involve criminals who create fake identities and use social engineering to trick victims—many of them American—into funneling money into fraudulent digital asset investments. According to Gene Lange, who is performing the duties of Under Secretary for Terrorism and Financial Intelligence, these scams represent one of the most significant fraud threats facing Americans today, with transnational criminal organizations based largely in Southeast Asia exploiting both emerging technologies and human vulnerabilities to inflict devastating financial losses.
As part of the announcement, FinCEN issued an alert urging financial institutions to remain vigilant in detecting, preventing, and reporting suspicious activity tied to scam center operations. The alert highlights behavioral, financial, and technical red flags designed to help banks and other institutions identify illicit transactions connected to these schemes. It also details how scam center operators rely on “guarantee marketplaces”—online platforms where they purchase services such as fake account creation, phishing tools, and money laundering—and employ professional money launderers who use shell companies, money mule networks, and stablecoin transfers to move stolen funds into the formal financial system. FinCEN strongly encourages financial institutions to participate in voluntary information-sharing programs under Section 314(b) of the USA PATRIOT Act, noting that the Rapid Response Program works with foreign financial intelligence units to intercept and repatriate fraudulent transactions.
FinCEN also published a Financial Trend Analysis that examined 33,904 Bank Secrecy Act reports filed between September 2023 and December 2025, which collectively accounted for the approximately $12.7 billion in suspected scam-related activity. According to the analysis, victims of these scams span all 50 states and U.S. territories. FinCEN also found that 96 percent of all reported scams were filed by money services businesses engaged in the digital asset sectors and depository institutions. The analysis also showed that the volume of suspicious activity reports and the total dollar amounts grew significantly over the review period, and that scammers used a variety of well-known fraud tactics—including impersonating romantic partners, friends, and business associates—while leveraging fake websites and mobile applications that mimicked legitimate investment platforms.
FinCEN Press Release | FinCEN Alert | FinCEN – Financial Trend Analysis