US banks report surge in money laundering accounts

Financial institutions in the US are grappling with an alarming escalation in money laundering and scams, according to new research from BioCatch.

Banks report surge in money laundering

The behavioural biometrics firm reports that confirmed money laundering accounts rose by 168 per cent in H1 2025 compared with the same period last year.

The findings underscore how organised crime groups are exploiting “mule” networks to clean illicit funds at scale.

Despite scam volumes appearing flat year-on-year, BioCatch notes that reported levels remain four times higher than just two years ago.

Scams the Most Damaging

Investment scams remain the most damaging, costing Americans more than $6.5bn in 2024, according to FBI figures. Impersonation scams and purchase scams continue to dominate in volume, highlighting the wide spectrum of consumer vulnerabilities.

Experts warn that structural weaknesses in the US market, coupled with rapid advances in criminal technology, are fuelling the surge.

Donna Turner, former COO of the Zelle payments consortium, described the situation starkly.

“The trifecta of fraud displacement from abroad, the rise and weaponisation of advanced AI tools, and the complexity of the US financial environment have combined to fuel an ever-expanding wave of successful scams. Sadly, that reality is here.”

Laundering Proceeds

The BioCatch report also identifies stablecoins as a preferred vehicle for laundering scam proceeds.

While inherently legitimate, these digital assets provide speed and cross-border reach, making them attractive to fraudsters when paired with authorised push payments (APP).

“Stablecoins aren’t nefarious,” said BioCatch’s Rob Autrey, “but they have become the preferred getaway vehicle for scammers.”

Fraud patterns differ sharply across institutions.

Credit unions, for example, recorded a 55 per cent increase in cases involving remote access Trojans (RATs), which now account for 15 per cent of their fraud exposure.

Nasdaq Verafin’s Colin Parsons observed that AI-enabled tools are accelerating this trend: “AI helps scammers tailor scams with a speed and scale never seen before, mimicking the service levels members expect from their credit unions.”

Evolving Landscape

Other findings highlight an evolving threat landscape.

Account opening fraud attempts fell 18 per cent, but account takeover (ATO) attempts rose 13 per cent, with RAT-enabled ATOs increasing 50 per cent.

US institutions are also reporting spikes in stolen device fraud, and analysts warn that malware, long a scourge abroad, could soon become more prevalent domestically.

Card fraud, meanwhile, remains rampant at mid-market credit unions, comprising nearly a fifth of reported cases.

The report paints a sobering picture: as fraudsters adopt advanced tools and exploit real-time rails, the risks to consumers, businesses and financial stability are intensifying.

For banks and credit unions, the challenge will be to build defences that match the speed and sophistication of the criminals.