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Crypto investment scams: FinCEN maps the funding chain banks can see

On 3 September 2026 FinCEN published an alert to financial institutions and an analysis of 33,904 suspicious activity reports covering $12.7bn. The document reconstructs how victims fund their payments, from the checking account to the home equity line, before the proceeds are converted into stablecoin.

The Financial Crimes Enforcement Network (FinCEN), the financial intelligence unit of the U.S. Treasury, issued an alert referenced FIN-2026-Alert005 on 3 September 2026, together with an analysis of digital asset investment scams. The analysis covers 33,904 suspicious activity reports filed between 8 September 2023 and 31 December 2025 by roughly 1,300 institutions, tied to $12.7bn. It reconstructs a funding sequence that plays out inside the bank.

$12.7bn
in reported activity over the period
FinCEN, 3 September 2026
33,904
reports analyzed
FinCEN
≈1,300
filing institutions
FinCEN
$7.2bn
in reported victim losses in 2025, against $907M in 2021
FBI IC3, cited by FinCEN

What the 33,904 reports cover

A suspicious activity report, or SAR, is a filing submitted by an institution subject to the Bank Secrecy Act. It records a suspicion and carries no criminal finding. FinCEN selected the reports that carry the key term from its 2023 alert on pig butchering, sorted by filing date rather than by the date of the underlying activity.

ℹ️
The curve also tracks adoption of the key term
Monthly report volume grew by an average of 10.9 percent and reported amounts by 18 percent. October 2023 brought 590 reports covering more than $485.7 million, December 2025 brought 2,482 reports covering more than $833.5 million. FinCEN notes in a footnote that the rise may reflect wider adoption of its key term, and does not on its own establish that scams are accelerating.

The funding sequence, from the checking account to the home equity line

The analysis lists the resources victims draw on, and the same list recurs from one case to the next. Victims start with the money they can reach at once, then turn to other resources as further payments are demanded.

  • Personal checking and savings accounts, drawn on first.
  • Withdrawals from retirement and investment accounts, and sales of securities.
  • Borrowing: home equity lines of credit, credit card advances, personal loans.
  • A smaller share of victims solicited funds from third parties, received by wire, peer-to-peer transfer or cash.

Two cases cited by FinCEN show the scale. A money services business reported an older victim who moved close to $640,000 out of a retirement fund. A depository institution described a customer who withdrew close to $150,000 from a retirement account, opened a home equity line of credit, took a personal loan and refinanced a mortgage.

A person at a laptop holding a payment card
The bank sees the loan application and the outgoing transfer, rarely the receiving address.

Who files, and who sees the money

Institution typeReportsShareAmounts
Money services businesses (MSBs)18,56854.8%$5.5bn
Depository institutions13,81040.7%$6.4bn
Securities and futures firms1,5044.4%$784.5M
Other220.1%$8.4M
Total33,904100%$12.7bn
Reports and amounts by institution type, 2023-2025

The first two groups do not see the same thing. Money services businesses, mostly those in the digital asset sector, report victims sending tokens to scammer-affiliated addresses. Depository institutions report loan applications, second mortgages and transfers tied to an investment. FinCEN notes that each filer supplies only a snapshot of the cycle.

After the bank, conversion into stablecoin

The reports name at least 22 digital assets. Ethereum, Tether (USDT) and USD Coin (USDC) come up most often, and many bank filings do not specify the asset involved. Using blockchain analytics tools, FinCEN finds that scammers almost always convert the proceeds into stablecoins, almost exclusively USDT. Decentralized protocols then move those tokens from Ethereum to Tron before they reach exchanges based outside the United States.

A person checking a phone in front of a bitcoin kiosk
Digital asset kiosks rank among the entry points FinCEN describes.

What the alert asks institutions to do

The alert asks institutions reporting activity linked to these centers to include the key term FIN-2026-SCAMCENTERS in field 2 of the form and in the narrative, then to select “Fraud-Other” in field 34(z) with the description “Scam Centers”. It lists sixteen indicators, among them the use of a stablecoin whose issuer advertises that it does not cooperate with authorities. FinCEN also encourages the voluntary sharing provided for under section 314(b) of the USA Patriot Act, which shields eligible institutions that exchange information on suspected money laundering or fraud.

⚠️
Detection usually comes after the fact
FinCEN writes that institutions often become aware of the activity once the scam has ended, or after a heavy loss. When detection is early, the institution generally tries to talk the customer out of the transfer, and customers often insist on going ahead. Since 2015, the agency’s rapid response program, run with U.S. law enforcement and foreign partners, has helped interdict $1.8 billion and recover more than $1 billion for 5,790 U.S. victims.
8 September 2023
Pig butchering alert
The key term introduced here is what isolates the reports analyzed.
14 October 2025
Measure against Huione Group
A final rule bars covered institutions from maintaining a correspondent account for the Cambodian group.
6 March 2026
Executive Order 14390
Protecting Americans from these schemes becomes declared federal policy.
3 September 2026
Alert and trend analysis
The scam centers described operate mainly in Cambodia, Laos and Burma.

Provenance

Published on 3 September 2026

4 sources, 2 distinct domains

FinCEN, FinCEN Identifies Nearly $13 Billion Linked to Suspected Digital Asset Scams · fincen.govFinCEN, Alert FIN-2026-Alert005 (PDF) · fincen.govFinCEN, Digital Asset Investment Scams: 2023-2025 Threat Pattern & Trend Information (PDF) · fincen.govABA Banking Journal, FinCEN identifies nearly $13B in suspected crypto investment scams · bankingjournal.aba.com
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