The founder of several websites described as a "successor" to Backpage.com, the now-defunct website that facilitated illicit sex advertising, used gift cards and banks to launder millions of dollars and refused conventional online payments, federal prosecutors said Friday.
Several U.S. banks have intensified their efforts to spot sex trafficking payments following the federal shutdown of Backpage.com, including by cross-referencing their own know-your-customer data against dozens of other websites that advertise potentially illicit adult services.
Financial institutions face new challenges in identifying human trafficking payments following the federal government’s dismantlement of Backpage.com, the most widely used high-profile website for advertising prostitution, say sources.
The Financial Crimes Enforcement Network issued a supplementary advisory on identifying and reporting human trafficking and related activities, supplementing its 2014 guidance on recognizing financial flags that may be associated with human trafficking.
October 15, 2020
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