PRINCETON, N.J.– Organized crime groups have “industrialized digital banking fraud operations” in the United States, with money mule networks surging 168% in the first half of 2025, according to a new report.
“Money mules are being recruited at an unprecedented scale, and they’re using stablecoins to transfer funds to crypto exchanges,” BankInfoSecurity.com reported. “The surge in fraud reflects a fundamental transformation in how criminals launder proceeds from account takeover attacks, investment scams and social engineering schemes before detection systems can intervene, according to BioCatch’s 2025 Digital Banking Fraud Trends report.”
The Catalyst
BankInfoSecurity noted the report found that stablecoins are the catalyst for expanding their networks of money mules, who transfer or receive illegally obtained money on behalf of criminals, often without fully knowing the extent of the crime.
“Unlike volatile cryptocurrencies such as Bitcoin, stablecoins such as Tether and USD Coin maintain dollar parity while offering instant, irreversible transfers that bypass traditional anti-money laundering controls,” BankInfoSecurity reported.
Between January 2020 and February 2024, 84% of romance and investment scam proceeds were laundered through Tether, the report said. By mid-2025, stablecoins accounted for 63% of all illicit on-chain transactions, with $649 billion in fraudulent funds flowing through the ecosystem, the analysis added.
Draining Accounts
“The surge indicates criminal organizations have optimized their cash-out operations to take advantage of the unique characteristics of stablecoins,” BankInfoSecurity said. “Fraudsters drain victim accounts through account takeover attacks, transfer funds to mule accounts, then convert proceeds to stablecoins through exchanges that have weak KYC processes. These coins offer criminals dual advantages — stable pricing that eliminates volatility risk, and blockchain-based transfers that bypass traditional SWIFT monitoring and AML systems.”
It added that the crypto tokens’ perception as a digital dollar rather than risky cryptocurrencies increases victim compliance during social engineering attacks, helping to ensure victims will be more likely to follow instructions from scammers.
