Pig Butchering Scam Involves Major Banks, Costs U.S. $44 Billion Annually

An extensive international scam network, known as “pig butchering,” has been uncovered, involving some of the world’s most prominent banks. This scheme targets U.S. citizens by emotionally manipulating victims before financially exploiting them. The scam generates an estimated $44 billion annually, with funds initially wired to U.S. bank accounts and then converted into cryptocurrency. These digital assets are subsequently sent to criminal networks based in Southeast Asia, where they are converted back into fiat currency.

The investigation reveals that banks such as Bank of America, Citibank, Chase, HSBC, and Wells Fargo have been used to facilitate the transfer of stolen funds. The process begins with victims being tricked into wiring money to U.S. bank accounts, which then serve as entry points in the money laundering chain. These accounts are often rented out in an underground market, with advertisements frequently appearing in Chinese-language Telegram groups.

The scheme highlights the challenges faced by financial institutions in preventing fraud. Despite rigorous controls and increased scrutiny, scammers continue to find ways to exploit banks’ reputations and hide behind fake identities or shell companies. The American Bankers Association acknowledges that completely stopping fraud is nearly impossible, given the sophisticated tactics employed by criminals.

The revelations underscore the complexity of global crime operations and the need for enhanced compliance measures. Even the most trusted financial institutions can be unwittingly entangled in these schemes, despite growing efforts to tighten controls and detect red flags. The investigation serves as a stark reminder of the ongoing battle against financial fraud and the importance of vigilance in the financial sector.