When people get scammed and money is transferred out of their bank, why isn’t there a paper trail? If the money is transferred into some foreign country that won’t allow tracing, why not just exclude those countries from the banking system?

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When people get scammed and money is transferred out of their bank, why isn’t there a paper trail? If the money is transferred into some foreign country that won’t allow tracing, why not just exclude those countries from the banking system?

In: 7825

There is a paper trail.
Transferring money electronically by the system itself requires knowing what bank it’s going to(routing number) and what account it’s going to.
There’s other ways to send money but the second half of the question about a network means it would likely use this.
Sending gift cards or something pre-paid in the similar to cash section is different but even then sometimes can be traced.

The implications of cutting off an entire country, negatively impacting their ability to do business on a global level, for a scam would be an extreme measure.
To even get that kind of discussion, it literally take[s an act of war.](https://www.google.com/amp/s/www.kiro7.com/news/trending/what-is-swift-what-happens-if-russians-are-cut-off-it/HIUXX6HZK5DV7GPT77ETSI6XDY/%3FoutputType%3Damp) A few scammers in a country are not equivalent at the geopolitical level as an invasion of another country.

Other things have happened like banning certain banks from operating with a country’s citizens, like the US restricting a bank that was used to [launder North Korean money. ](https://www.nytimes.com/2007/01/18/world/asia/18iht-north.4255039.html)

Under the Patriot Act, there are ways to freeze accounts and some other things but that’s for terrorism.

Even then, targeting one country’s banks due to fraud just kind of slows the problem. Country A bans Country B. No other country bans another.

So they transfer to neutral Country C instead, then B.
Is country A just supposed to ban all transfers then to stop this?
Cutting off from financial networks took several countries to agree, otherwise there’s ways to still get to the restricted country because it’s well… a network.

The paper trail exists, but it can be very difficult to follow. The problem is that the scammers are often based in countries that don’t have good laws for tracking down and prosecuting criminals. So even if you can find where the money went, you may not be able to get it back or prosecute the people who took it.

You pay a bunch of 12 yo 20 bucks for their debit card. They think its fine caus its empty. You transfer the money to those accounts and simply withdraw the money.

The paper trail typically ends with a cash withdrawal. Most scammers will use Western Union or other money transfer services that are designed to allow for very quick movement of money, although some have begun switching to crypto. Most bank fraud departments work 24/7 and start trying to get fraudulent transfers reversed immediately, but even a few hours delay can make the difference.

Typically there are multiple accounts involved in a transfer chain, and almost all of the owners of those accounts will often be victims of fraud themselves, or at worst mules who are just transferring money around for a small cut. Most commonly they’re people who have fallen for employment or investment scams, where the funds from the first victim are transferred into their accounts, only for them to be contacted and told there was an error and could they please send the money onwards to the right account?

Professional fraudsters limit their liabilities by making it impossible for banks to completely shut down their methods without making life much harder for everyone else who uses these services legitimately.

There is a paper trail, banks involved have records of each and every transaction for certain. But if you have a victim and victim’s bank in country A, a intermediary bank in country B an criminal with criminal’s bank in country C then good luck to victim trying to get their money back because no court has jurisdiction over all the banks involved. And banks certainly don’t give out any banking information unless the law says they must.