Treasury sanctions networks targeting Americans with cyber scams

The Treasury Department sanctioned a large network of scam centers across Southeast Asia that steal billions of dollars from Americans.

Details: Treasury said:

• The action includes nine targets operating in Burma, a hub for virtual currency investment scams under the protection of the Karen National Army, as well as 10 targets based in Cambodia.

• Southeast Asia-based criminal organizations often recruit individuals to work in scam centers under false pretenses.

Scale: The FBI has reported that cryptocurrency fraud surged 66% last year, reaching almost $10 billion in losses.

ICBA View: ICBA in June said it strongly supports a Financial Crimes Enforcement Network proposed rule to designate the Cambodia-based Huione Group as a primary money laundering concern, but it said more needs to be done to curtail the rapid growth of crypto scams.

What It Means for Community Banks: In a statement for a congressional hearing on crypto-based romance confidence scams last fall, ICBA said the persistent growth of such scams emphasizes the urgent need for policymakers to prioritize national security, counter illicit finance uses of cryptocurrency, and improve information sharing with community banks. ICBA blog posts spotlight the growth of these scams and the need for a policy response.