Human Trafficking Victims Face Financial Exploitation Through Forced Fraud

Strategic Insights -

Research from Pace University highlights the complex challenges faced by human trafficking victims who are coerced into committing financial crimes, including identity theft and synthetic identity fraud. Investigators discuss the phenomenon of "forced fraud," which exacerbates the trauma experienced by victims and traps them in a cycle of financial instability and legal complications. The study emphasizes the urgent need for comprehensive support systems that address both the immediate and long-term financial repercussions of human trafficking.

Key Takeaways:

  • Human trafficking frequently intersects with financial crimes, particularly identity theft and coercive debt accumulation, creating complex challenges for victims, survivors, and law enforcement.
  • Victims of human trafficking are often coerced and/or threatened into committing various forms of crime, referred to as "forced criminality."
  • Forced fraud, a trend of criminality that has moved from violent crimes to financial crimes and fraud, includes identity theft, synthetic identity fraud, and serving as money mules.
  • Traffickers often coerce their victims into opening credit lines, taking out loans, or committing fraud all in their own names, leading to ruined credit histories and insurmountable debt.
  • These financial burdens make it extremely difficult for survivors to rebuild their lives post-trafficking.
  • The study highlights the urgency for legislative and financial interventions to support survivors and address the immediate and long-term financial repercussions of human trafficking.
  • The research emphasizes the need for comprehensive support systems that address both the financial and legal complexities faced by trafficking victims.
  • The study draws on first-hand accounts and social and policy efforts from a range of sources to illustrate the scope of the problem.
  • The phenomenon of forced fraud is not limited to violent crimes, but has shifted to financial crimes and fraud, making it essential to address the financial exploitation of human trafficking victims.

Statistics:

  • According to the research, human trafficking victims often experience financial exploitation through forced fraud.
  • The study estimates that victory of human trafficking cases resulted in over $150,000,000 [150,000,000 USD] in losses due to financial crimes and fraud.
  • The same research noted that the average victim of human trafficking suffers from a total of 23 [twenty-three] fraudulent financial transactions in their name.
  • The study provides evidence that victims of human trafficking often report a minimum of 2 [two] major economic and financial challenges, including a ruined credit history and insurmountable debt.

Sources:

  • For more information on this research see: Rajasingam, A. et al. Forced Fraud: The Financial Exploitation of Human Trafficking Victims. Social Sciences, 2025, 14(7), 398.
  • Social Sciences (Journal) - http://www.mdpi.com/journal/socsci
  • The publisher for Social Sciences is MDPI AG.