Federal law enforcement agencies today announced the formation of an interagency “strike force” to target Southeast Asian cryptocurrency-related investment scams and confidence schemes.
The targeted scam centers use U.S. social media networks or text messages to gain the trust of their targeted victims, convince them to invest in real cryptocurrency, and then trick victims into transferring those funds into fake cryptocurrency investment websites and applications, according to a statement.
“In 2024 alone, American victims were scammed out of more than $9 billion as a result of this cryptocurrency fraud,” U.S. Attorney for D.C. Jeanine Pirro said in an announcement about the strike force. “Experts estimate because of underreporting, it is as much as 15 times more than the $9 billion.”
The Scam Center Strike Force will focus on identifying and pursuing key leaders behind the scams, including Chinese-organized crime affiliates operating in Cambodia, Laos and Burma, according to the agencies. It will also work to seize and disable U.S.-based facilities and infrastructure that provide the means to execute scams.
The strike force will combine the resources of U.S. Attorney’s Office with the Department of Justice’s Criminal Division, the FBI and the Secret Service. It also plans to partner with the State Department, the Department of Treasury’s Office of Foreign Assets Control and the Department of Commerce.
In a statement, American Bankers Association President and CEO Rob Nichols said that by bringing together the relevant federal agencies, the strike force “can take the fight against international fraud and scams to a new level.”
“By working together and using sanctions, seizures, criminal prosecutions and other available tools, the strike force can target bad actors operating outside the U.S. as well as individuals and businesses in this country supporting the scammers,” Nichols said. “ABA and our member banks stand ready to support this effort and work with the strike force and other stakeholders to stop these scams, safeguard Americans’ financial security and ensure that criminals are held accountable.”
