US Treasury unit blocks nearly $2 billion in cyber fraud proceeds
Washington, July 22
The US Treasury's financial intelligence unit has helped block nearly $2 billion in stolen proceeds linked to cyber-enabled fraud affecting more than 5,700 American individuals and businesses, its director told lawmakers.
Andrea Gacki, director of the Financial Crimes Enforcement Network, or FinCEN, said the agency's Rapid Response Programme works with US law enforcement and foreign partners to recover money sent overseas and return it to victims.
"Since its inception in 2015, the Rapid Response Program has facilitated the interdiction of nearly $2 billion in stolen proceeds for over 5,700 US individuals and businesses," Gacki told a House Financial Services subcommittee hearing.
Noting that FinCEN had also severed from the US financial system the Huione Group, she described it as responsible for laundering at least $4 billion in illicit proceeds. The agency acted against the group in October 2025 and took further action last month against its successor entities.
Gacki said fraud remained one of the largest sources of illicit proceeds in the United States. FinCEN has identified patterns associated with schemes targeting government, healthcare and other benefit programmes, she said.
The agency has alerted financial institutions and law enforcement, provided analysis of suspected fraud and issued guidance allowing financial institutions to share information about fraud in real time.
Gacki also said FinCEN was moving to make its whistleblower programme fully operational. Treasury Secretary Scott Bessent announced a dedicated website in February to accept confidential tips. A proposed rule issued in April set out procedures, eligibility standards and confidentiality requirements for awards.
"FinCEN is actively triaging incoming tips and directing them appropriately," she said. Payments will begin after the final rule determines the criteria for granting awards.
The hearing also exposed sharp disagreement over the reach of US financial surveillance.
Subcommittee Chairman Warren Davidson said financial institutions submit nearly 5 million suspicious activity reports and more than 21 million currency transaction reports each year. He argued that the system imposed heavy compliance costs without producing proportionate results.
"In the half century since, it has grown into a bloated surveillance apparatus demanding endless reports without delivering proportional results," Davidson said of the Bank Secrecy Act.
Democratic Representative Joyce Beatty warned against weakening safeguards as criminals increasingly use cryptocurrency and artificial intelligence. She cited FBI data showing that Americans lost nearly $21 billion to cyber-enabled crimes in 2025, up from $16 billion in 2024.
FinCEN, a bureau of the US Treasury Department, was established in 1990 to collect and analyse information about financial transactions. Its work supports investigations into money laundering, terrorism financing, sanctions evasion, fraud and other financial crimes.
— IANS
Reader Comments
Interesting that the US Treasury can freeze and recover stolen funds that quickly. Meanwhile, in India, we still struggle with cyber crime reporting and recovery. RBI and our cyber cell should learn from FinCEN's approach. Especially with online scams targeting senior citizens and small businesses. 👴🏽👩🏽💻
The whistleblower program is a smart move. But I'm worried about the surveillance expansion — 5 million suspicious activity reports per year sounds like a lot of red tape. There needs to be balance between security and privacy. Glad to see this debate happening in their Congress.
$21 billion lost by Americans in 2025? That's insane, yaar. Even with recovery programs, the criminals are always one step ahead. India needs to step up its game — our UPI frauds, OTP scams, and fake investment schemes are running rampant. Time for a dedicated financial intelligence unit like FinCEN here. 🇮🇳
The Huione Group case shows that even billion-dollar laundering networks can be disrupted. Impressive work by FinCEN. However, I worry about the compliance burden on small banks and credit unions — 21 million currency transaction reports yearly is excessive. We need smarter regulations, not just more.
As someone who works in fintech, I can tell you that AI-driven fraud is the new monster. The fact that FinCEN is sharing real-time data with financial institutions is a game-changer. In India, we have the FIU, but coordination with law enforcement is still slow. Hope our government takes notes from this. 📝