Cuckoo Smurfing essentially takes large transactions into smaller ones to steal or launder money from the government. This technique is often used as a way to avoid paying taxes illegally. Through Cuckoo Smurfing, criminals can use cash or drugs without being caught. Criminals deposit their money into seemingly innocent bank accounts. They typically enlist the help of internal bank employees to find these accounts.

The money is inserted into the financial system, often by purchasing casinos or international currency. From there, the money is allocated to other accounts through complex bank transactions designed to conceal its source.