How Foreign Scammers Use U.S. Banks to Fleece Americans (propublica.org) 32
U.S. banks have failed to prevent mass-scale money laundering in the face of approximately $44 billion per year in pig-butchering scams conducted by Asian crime syndicates, according to a ProPublica investigation.
Chinese-language Telegram channels openly advertise rental of U.S. bank accounts to scammers who use them to move victims' cash into cryptocurrency. Bank of America allowed hundreds of unverified customers to open accounts, prosecutors alleged, including 176 customers who claimed the same small home as their address.
Major financial institutions whose accounts pig-butchering scammers have exploited include Bank of America, Chase, Citibank, HSBC and Wells Fargo. The scams typically involve fake cryptocurrency trading platforms that convince victims to wire money to seemingly legitimate business accounts. Banks are reluctant to share account information with each other even after identifying suspicious activity, and "no real standards" exist for what banks must do to detect fraud or money laundering.
Chinese-language Telegram channels openly advertise rental of U.S. bank accounts to scammers who use them to move victims' cash into cryptocurrency. Bank of America allowed hundreds of unverified customers to open accounts, prosecutors alleged, including 176 customers who claimed the same small home as their address.
Major financial institutions whose accounts pig-butchering scammers have exploited include Bank of America, Chase, Citibank, HSBC and Wells Fargo. The scams typically involve fake cryptocurrency trading platforms that convince victims to wire money to seemingly legitimate business accounts. Banks are reluctant to share account information with each other even after identifying suspicious activity, and "no real standards" exist for what banks must do to detect fraud or money laundering.
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Wrong attitude. Instead of blaming the victim why don't we come up with solutions to stop this, starting with the banks and their seemingly inept methods of banking.
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Soo, say, would you also say the MAGAs are not responsible for the bad choice they made with their votes?
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their seemingly inept methods of banking.
They're not being "inept" when they allow money laundering, it's an important portion of their business. Around a TRILLION dollars (yes, with a T) is laundered through the US banking system every year, we're the world's largest money laundry (mostly through banks, but also the stock exchange and real estate). They typically charge 10-15% for the service, which amounts to billions in revenue.
Under the Clinton Administration a sting was run against Banamex, the "drug smuggler's bank of choice", and they wer
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Then the bank, without verifying or following their own security protocols, wire transfer's the money out of the victims bank account.
Then the bank goes all pikachu face and says they can't do anything to help you. Afterall, it's not their fucking money that they gave away...
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In fact, the CEO's that created those fraudulent schemes were arrested and still in prison for breaking the law
LoL. Wait....this is America.
In a nutshell.. (Score:4, Informative)
Where to go for help with banks, credit unions (Score:4, Informative)
A good place to start when there's a problem with your bank: https://www.helpwithmybank.gov... [helpwithmybank.gov]
Credit Unions are supervised by a different agency: https://ncua.gov/consumers [ncua.gov]
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regulation is a way out - but we can't have it (Score:2)
But it has to be effective regulation. Too bad the criminals on Capital Hill are no better than the criminals abroad.
Folks, we're on our own. The government isn't going to step in and protect us. The banks certainly aren't going to do it.
If your loved one is into crypto, and excited about a new investment: Stop them! Call their bank and report the suspicious activity, some banks still do listen even if they do so far too late. Steal their phone and change their passwords if you have to. Although getting loc
Foreign scammers? (Score:2)
FTFY (Score:5, Informative)
s/failed to prevent/enabled/
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s/failed to prevent/enabled/
This.
Until banks are made liable and laws regarding due diligence are enforced then banks are enabling this behaviour.
From the TFS:
Bank of America allowed hundreds of unverified customers to open accounts
My first thought was "what the juddering fuck", which was also my second and third thoughts. A major bank is allowing people to open accounts without knowing who those people are? Without even verifying that they're a legal resident or have a residential address? Basic checks gone by the wayside.
Why?
That's simple, banks are making huge profits from people using their
That's actually rather impressive (Score:2)
Bank of America allowed hundreds of unverified customers to open accounts, prosecutors alleged, including 176 customers who claimed the same small home as their address.
I'm no fan of Bank of America, but with 70,000,000 customers, "hundreds" of problematic accounts seems more like they're doing a good job in this area rather than a bad one.
Told you so... (Score:2)
And you did your usual thing
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And if the missing money causes overdrafts they charge fees on those as well, even though the overdraft is their fault rather than yours. They'll also jack up your credit card rate if the payment is turned down for NSF.
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Thus they don't give a shit.
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Oh, yeah. The predictable smugness of Europeans, who like to tout how safe their systems are while buying horse meat that was advertised as hamburger.
Bank of America (Score:1)
In recently opened an account at Bank of America. My opening deposit was $434,500.
We were not able to access on-line banking while I was there. Was told to call an 800 number. When I got home, I called the number.
I was transferred around a few times and at some point, I was told it was a fraud issue, and I had to go to an office with two forms of ID. I said that I had JUST COME from their office, having opened an account with THREE forms of ID. I further stated that if I had to go to their office, it woul
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Yeah, but at Wells Fargo, you should expect this kind of thing.
It also shouldn't matter how much money you have in an account. Nobody should be transferred four times, ever, for any reason.
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I'm on BoA's side with this. What happened to you in your story SHOULD happen at any reputable bank.
If someone who opens a new account with a check and immediately wants to take out money from the new account that is funded only with that check is typically either a novice mimicking the classic path of a check kiting scam, or they're the victim of what is called a refund scam.
I am NOT saying that is what you were doing, I'm saying to the bank, this is what these common scams look like and they have rules t
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That was the case three decades ago, but today when you give them the check and the teller runs it through their scanner they have the money within minutes if not seconds. The only reason to hold a check now is to take advantage of the float time.
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That was the case three decades ago, but today when you give them the check and the teller runs it through their scanner they have the money within minutes if not seconds. The only reason to hold a check now is to take advantage of the float time.
You are confusing "the bank crediting your account" and your bank "getting the money from the bank the check is drawn on".
Banks do this for small amounts. ACH is still a batch process that can take a few days.
Here is guidance from the Federal Reserve regarding the CFPB regulation CC. In the OP's new account case, they can hold for 9 days There are additional concerns.
https://www.federalreserve.gov... [federalreserve.gov]
"Deposits into accounts of new customers (open for less than 30 days)--Next-day availability applies