How the Fraud Center Industry Works

Criminal groups set up camps where they lure people under the guise of employment abroad. Victims are being forced to commit online scams: phishing, romantic scams, investment schemes, and crypto fraud. These centers use modern technology to hide operations and quickly change tactics.

Initially, such schemes were active in Myanmar, Cambodia and Laos. They later spread to China, India, Russia, Colombia, East Africa, and even the United Kingdom.

Financial flows and connection with cryptocurrencies

Ari Redboard, a former employee of the US Treasury Department and currently head of Global policy at the analytical company TRM Labs, noted:

"A few years ago, the flow of funds from fraudulent transactions followed relatively predictable paths through the main exchanges. Today, they are much more dependent on stablecoins, low-commission blockchains, and fast cross-chain swaps to fragment movement and gain time."

Investigations have revealed that platforms linked to the scammers have processed billions of dollars worth of cryptotransactions. The US Treasury Department has already introduced measures against companies involved in money laundering through stablecoins, low-commission blockchains and fast cross-chain swaps. Experts note an increase in the use of Chinese money laundering networks and over-the-counter brokers, which complicates control.

According to experts, it is the joint actions of different countries that make it possible to more effectively track assets and block financial channels of criminals. New US working groups and cooperation with Asia and Europe show that law enforcement agencies have more opportunities to actually counter fraudulent networks.