A plain-language summary of the U.S. Treasury's latest findings — and why staying informed protects your money.
By Noelvis Ramirez, MAcc — Noelvis Ramirez Accounting Services LLC
In September 2026, the Financial Crimes Enforcement Network (FinCEN) — part of the U.S. Department of the Treasury — released a Financial Trend Analysis on digital asset investment scams. The findings are sobering, and I'm sharing a summary here because this touches everyone: business owners, families, and especially our community.
This is educational information drawn directly from the official report. My goal is simple — the more you understand how these scams work, the harder you are to fool.
The scale of the problem
According to FinCEN, between September 8, 2023 and December 31, 2025, financial institutions filed 33,904 reports tied to suspected digital asset investment scams, involving approximately $12.7 billion in financial activity. The rate of suspected scam activity has been rising over time.
These scams go by several names you may have heard: "pig butchering," "romance baiting," or "cryptocurrency confidence schemes."
How the scam actually works
Understanding the pattern is your best defense. According to the report, these scams tend to follow the same lifecycle:
It starts with a message. Often an unsolicited text, a "wrong number" message, a social media contact, or a dating-app match. It feels random and harmless.
Trust is built slowly. The scammer uses a fake persona to develop what feels like a genuine friendship or romance over time. This is deliberate and patient.
The "opportunity" appears. Once trust exists, the scammer introduces a supposedly lucrative digital asset investment. The victim is directed to send money — believing it's being invested.
Fake growth keeps them hooked. Scammers send small "returns" early on, or show fake dashboards and apps, to make the investment look like it's growing rapidly. This encourages the victim to invest more.
It escalates. In serious cases, victims are led to liquidate savings, take out home equity loans or second mortgages, drain retirement accounts, or even borrow from friends and family.
The final trap. When victims try to withdraw their "gains," they're told they must first pay taxes or fees to release the funds. This is a major red flag — and often the moment the scam is revealed. When the victim can't or won't pay more, the scammer disappears.
Who is being targeted
One important finding: this affects people of all ages, in all 50 states and several U.S. territories. According to the report, older adults were not disproportionately victimized — they made up about 25% of these reports, roughly matching their share of the population. In other words, no age group is immune. Younger, tech-comfortable people are targeted too.
The human cost
The report doesn't shy away from how devastating these scams are. Victims have lost life savings. Some lost more than $1 million. The report notes cases involving retirement funds drained, homes remortgaged, and — heartbreakingly — victims who took their own lives after realizing what happened.
If you or someone you know is struggling, the 988 Suicide and Crisis Lifeline is available.
The red flags to remember
Based on the FinCEN findings, here are the warning signs worth memorizing:
- An unsolicited message from a stranger that turns into a close relationship.
- A new online friend or romantic partner who eventually introduces an investment.
- Pressure to invest in digital assets with promises of large, fast returns.
- Being shown impressive "gains" on an app or website you can't independently verify.
- Being told you must pay taxes or fees upfront to withdraw your money. Legitimate investments don't work this way.
- A "recovery service" that contacts you after you've been scammed, promising to get your money back for a fee. This is often a second scam targeting the same victim.
Why this matters — and where I come in
Here's the tax angle that makes this personal to my work: scammers weaponize the word "taxes." They tell victims they owe taxes or fees to release their funds. That is not how the IRS works, and it's not how legitimate investing works.
This is exactly why having a real professional you trust matters. When someone can tell you plainly, "No — the IRS does not work that way," that knowledge can stop a scam in its tracks.
Correct information protects your money. A headline, a stranger's promise, or a slick app is not a source you should trust with your savings. The source matters.
If you ever receive something that sounds too good to be true, or someone claims you owe "taxes" to unlock an investment, pause and ask someone who actually knows. That single conversation can save everything.
This article summarizes the FinCEN Financial Trend Analysis, "Digital Asset Investment Scams: 2023–2025 Threat Pattern & Trend Information" (September 2026). For the full official report, visit fincen.gov. This content is educational and not individualized financial or legal advice.