Bank Accounts Used by Scammers for Money Laundering, Many Victims

Scammers have a covert method to evade detection while absconding with victims’ money. They launder the funds using other people’s bank accounts. According to a report from MIT Technology Review, fraudsters utilise controlled or rented bank accounts where victims’ money is deposited. The proceeds are then redistributed before being converted into digital assets, typically the US dollar-pegged stablecoin Tether. These financial scams target vulnerabilities in the Know Your Customer (KYC) features on banking or cryptocurrency platforms. Cybersecurity fraud researcher Hieu Minh Ngo has found that scammers attempt to circumvent KYC by purchasing hacking tools sold on Telegram. For context, KYC is used to verify that accounts belong to real individuals and that the user’s face matches the registered identity document. The MIT Technology Review report identified 22 Telegram channels and groups selling such tools, appearing in languages including Mandarin, Vietnamese, and English. Some groups openly advertise these illegal tools, promising high quality. One such tool is designed like a camera to check user authenticity but is actually a virtual camera. A report from biometric verification firm iProov estimates that virtual camera attacks were more than 25 times more common globally in 2024. KYC provider Sumsub also reported that attempts to bypass processes using virtual cameras nearly tripled for its clients last year. This crime has been acknowledged by financial service providers and governments. In Thailand, the government has implemented safeguards including KYC monitoring, daily transaction limits, and strengthened powers for institutions to suspend accounts. Meanwhile, in the US, the Financial Crimes Enforcement Network has warned about deepfake KYC and Vcam usage in 2024, prompting platforms to track transaction patterns to identify money laundering.