A recent report reveals how criminal syndicates manipulate individuals while using US banks to launder stolen funds.
The 'Pig Butchering' Fraud Scheme
The 'pig butchering' scheme is a form of fraud where victims are emotionally manipulated before losing their money. According to ProPublica, this form of fraud generates about $44 billion annually, starting with deceiving victims into wiring funds to US bank accounts.
Banks Involved in Criminal Schemes
As reported by ProPublica, banks like Bank of America, Citibank, Chase, HSBC, and Wells Fargo have aided in funneling stolen money overseas. The funds are typically converted into cryptocurrency and sent to criminal networks in Southeast Asia.
Expert Insights on the Situation
Representatives from the American Bankers Association noted that completely stopping fraud is nearly impossible. 'Bad actors exploit banks’ reputations and hide behind fake identities or shell companies,' they informed ProPublica.
Errors and weaknesses in the security systems of financial institutions emphasize the vulnerability of even the most trusted banks to modern fraudulent schemes.
