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Mastercard and Visa failed to prevent their payment networks from being used to launder proceeds from child sexual abuse material and sex trafficking on the popular site OnlyFans, according to allegations in a whistleblower complaint submitted to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
The whistleblower, a senior compliance expert with extensive experience in the credit card and banking industries, alleged that both companies were aware of their networks being utilized to process payments for illegal content on the platform since at least 2021. The whistleblower accused Mastercard and Visa of “turning a blind eye to flows of illicit revenue.”
Filed in January 2023 with FinCEN, as well as the Justice and Homeland Security departments, the complaint claimed the companies were warned of unlawful activity on OnlyFans through a series of calls with U.S. federal agents and anti-trafficking experts in 2021 and 2022. Federal agents reportedly corroborated the presence of child sexual abuse material on the platform during these discussions.
The complaint also cited a 2022 study conducted by an anti-trafficking organization, which documented a “high volume” of OnlyFans accounts with indicators of child sexual abuse material or sex trafficking. The whistleblower, who contributed to the study, stated it was shared with Visa and Mastercard.
According to the whistleblower, Mastercard and Visa were “directly handling the proceeds of these illicit transactions” by continuing to process payments on OnlyFans, and had “willfully failed” to uphold anti-money laundering programs required under the Bank Secrecy Act. The complaint called for action against the two companies by FinCEN and the other federal agencies involved.
An email reviewed by Reuters confirmed FinCEN received the complaint, but the agency declined to confirm or deny its existence. The Justice and Homeland Security departments also declined to comment. Reuters was unable to verify what action, if any, the agencies took after the complaint was filed. The whistleblower, who remains anonymous, stated that none of the agencies contacted him to discuss his claims.
In response to questions from Reuters, Mastercard and Visa both denied the allegations in the complaint. A Visa spokesperson emphasized that non-compliant merchants or financial institutions would be removed from its network and asserted that Visa employs “best-in-class controls to deter, detect and remediate illegal activity.” Mastercard’s spokesperson stated that the company holds all users of its payments system to “high standards” and acts when illegal activity is identified. Both companies said they were unaware of the whistleblower complaint prior to being contacted by Reuters.
Mastercard’s spokesperson dismissed the notion that the company had failed to maintain effective anti-money laundering programs, citing its “strong governance standards” and compliance measures. The spokesperson also said that while the whistleblower’s claims lacked evidence of ongoing illegal activity, Mastercard takes such allegations seriously.
Despite these assurances, Reuters uncovered additional allegations involving child sexual abuse material and sex trafficking on OnlyFans. Reports have surfaced of sexually explicit images and videos of minors, some as young as toddlers, appearing on the platform since 2019. In one case, a child exploitation investigator reported 26 OnlyFans accounts to authorities for allegedly containing sexual content involving underage girls. The accounts were subsequently taken down.
OnlyFans, based in the United Kingdom, generates revenue through subscriptions and pay-per-view content. It claims to enforce a “zero-tolerance policy” against child abuse or trafficking and says it reports illegal content to law enforcement. On its website, the company states it works to “aggressively target, report, and support the investigations and prosecutions” of offenders who exploit the platform. However, the site has faced criticism for its compliance practices.
OnlyFans accepts payments from Mastercard, Visa, Discover, and other providers, although some companies, like American Express, prohibit their cards from being used for online adult content. In 2020, Mastercard, Visa, and Discover blocked payments to Pornhub after allegations of child sexual abuse material and other illegal content surfaced on that site.
In recent years, Mastercard and Visa have introduced stricter compliance measures for adult content platforms. Mastercard, in October 2021, required merchants to verify the age and identity of individuals depicted in content, obtain written consent, and submit monthly reports flagging potentially illegal material. Visa implemented similar rules in 2023 for high-risk merchants, including adult-related businesses.
Despite these changes, the whistleblower claimed Mastercard and Visa continued to process payments for OnlyFans while shifting responsibility onto banks for monitoring illicit transactions. “They had the power to turn off the switch,” the whistleblower told Reuters, but instead chose to proceed with “business as usual.”
The 2022 report by the Anti-Human Trafficking Intelligence Initiative (ATII), which informed the whistleblower’s complaint, documented troubling indicators of child sexual abuse material and sex trafficking on OnlyFans. These indicators included specific keywords and images found on publicly available profiles. The report was shared with Mastercard and Visa, according to the complaint, though neither company confirmed any action in response.
Mastercard and Visa’s spokespersons maintained that their networks are rigorously monitored and that any proven illegal activity is acted upon swiftly. Nonetheless, the whistleblower’s allegations raise serious questions about the responsibility of payment processors in combating illegal activity on adult content platforms.
By fLEXI tEAM
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