- FinCEN reviewed 33,904 BSA reports tied to about $12.7 billion in suspected crypto scam activity.
- Scammers often convert proceeds into stablecoins before moving funds through wallets and exchanges.
- Victims should contact their bank or exchange immediately and report transaction details to the IC3.
Crypto scam-related activity worth $12.7 billion was flagged in 33,904 Bank Secrecy Act reports filed by financial institutions, according to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). The agency published its latest analysis, covering reports filed between September 8, 2023 and December 31, 2025.
Crypto Scam Activity Spreads Across the US
Money services businesses (MSBs) submitted 18,568 reports, representing 54.8% of filings, covering more than $5.5 billion. Depository institutions filed 13,810 reports covering $6.4 billion. Securities and futures firms submitted 1,504 reports involving approximately $784.5 million. Others filed 22 reports, involving $8.4 million.
FinCEN received 590 reports covering $485.7 million in October 2023. By December 2025, monthly filings reached 2,482 and covered $833.5 million. Report counts grew 10.9% monthly on average, while reported amounts increased 18%. FinCEN cautioned that use of its reporting term could influence that growth.
Fake Relationships Feed Investment Traps
Scammers often begin through unsolicited texts, social media, dating services, or supposed wrong-number messages. They use false identities and pose as romantic partners, friends, or business contacts. After building trust, they introduce digital asset investments promising large returns.
Fake websites and mobile applications display invented profits. Some operators send small early payments to make the scheme appear genuine. They then press victims to transfer larger sums. When victims request withdrawals, scammers demand additional taxes or fees before ending communication.
FinCEN found that in some cases, scammers directed victims to liquidate savings, retirement funds, or take on loans, including home equity and second mortgages. They also routed victims to centralized exchanges or crypto kiosks, while others were instructed to send wire or ACH payments without ever holding cryptocurrency.
Stablecoins Play Key Role in Crypto Scam Proceeds
FinCEN identified at least 22 digital assets in suspected transactions, with Ethereum, Tether’s USDT, and USD Coin appearing most frequently. The analysis shows that scammers typically convert proceeds into stablecoins, primarily USDT, regardless of the original asset used.
Scammers reuse addresses to collect funds from several victims. They then route proceeds through decentralized finance services, foreign exchanges, peer-to-peer exchangers, and over-the-counter brokers.
FinCEN says guarantee marketplaces connect scam centers with account creation, phishing, technology, and laundering services. Professional launderers also create shell companies and financial accounts. Money mules and underground banking networks help move stablecoins into the formal financial system.
FinCEN Lists Warning Signs and Response Steps
In an alert released alongside the analysis, FinCEN outlined key warning signs and response measures for financial institutions and victims. It identifies unusual stablecoin flows, shared suspicious addresses, recovery services lacking records, and exchanges advertising “no KYC.” It also flags claims that an operator has FinCEN approval. Government impersonators requesting crypto, international wires, precious metals, or gift cards create another warning.
FinCEN stresses that one indicator alone does not prove illegal activity. Institutions should examine customer history, transaction purpose, business practices, and connected warning signs. FinCEN also outlined how institutions should report suspicious activity, including key transaction and wallet details.
The agency encourages voluntary information sharing under Section 314(b). Victims should immediately contact their financial institution and report the incident to the FBI’s IC3 or Secret Service. FinCEN’s Rapid Response Program can coordinate with foreign financial intelligence units to seek transaction freezes and fund recovery.
Related: Apopka Police Warn of Rising Crypto Scams as Losses Top $50K
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