How Foreign Scammers Use U.S. Banks to Fleece Americans

Published: Wednesday, June 25, 2025 at 9:00 am

**Pig-Butchering Scams Exploit Weaknesses in U.S. Banking System**

A recent investigation by ProPublica reveals a disturbing trend: the exploitation of U.S. bank accounts by international criminal organizations engaged in "pig-butchering" scams. These sophisticated schemes, often originating in Southeast Asia, lure victims into fraudulent investment opportunities, ultimately defrauding them of significant sums.

The investigation highlights how criminals are able to open bank accounts using false information, often with minimal verification. One case involved Middlesex Truck and Coach, a family-owned business, that was unexpectedly sued after a Chase account was opened in its name and used to receive funds from a cryptocurrency scam. The business owner, Brian Maloney Jr., discovered that Chase had allowed an unknown individual to open the account online without proper identification.

These fraudulent accounts serve as crucial way stations in a complex money-laundering process, facilitating the transfer of funds from U.S. victims to crime syndicates. The demand for these accounts is so high that a black market has emerged to rent them for illicit purposes. Banks, despite their legal obligation to prevent money laundering, have struggled to keep pace with the evolving tactics of these criminals.

The investigation details the story of Kevin, a victim who lost over $700,000 to a pig-butchering scheme. He was directed to wire funds to various accounts, including the fraudulent Middlesex account. Despite his attempts to recover his money, the process was slow and difficult. Kevin's experience underscores the challenges victims face in recovering their funds and the lack of a system tailored to protect them.

The article also highlights the role of banks in this crisis. While banks claim to invest in fraud detection systems, experts point to a lack of consistent standards and insufficient due diligence. The investigation cites examples of banks failing to detect suspicious activity and opening accounts with minimal verification.

BNN's Perspective:

This investigation underscores the urgent need for stronger regulations and increased collaboration between banks, law enforcement, and other industries to combat the growing threat of financial fraud. While banks are taking steps to address the issue, more needs to be done to protect consumers and prevent criminals from exploiting the U.S. financial system. The lack of a national fraud prevention strategy and the reluctance of banks to share information are major concerns.

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