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FinCEN advisory provides information on coronavirus fraud
The Financial Crimes Enforcement Network (FinCEN) issued an advisory yesterday on the potential indicators of two types of consumer fraud – imposter scams and money mule schemes – that have been observed amid the coronavirus pandemic. The advisory, containing descriptions of these scams and schemes, also includes financial red flag indicators and information on how to report suspicious activity.
The advisory, based on FinCEN’s analysis of coronavirus-related information obtained from Bank Secrecy Act (BSA) data, includes information on red flags related to the economic impact payments (EIP) established under the CARES Act, as well as charitable organization solicitations.
Relatedly, the Federal Trade Commission (FTC) has released an interactive map containing data that shows the cost of coronavirus fraud. CNBC reported on the data, which shows that Americans have lost over $77 million in coronavirus-related fraud – with a prime target being the EIP stimulus checks issued in April.
In addition, FinCEN released updated information to provide some relief as financial institutions work through issues caused by the coronavirus and announced the creation of a new online contact mechanism for coronavirus-specific communications in April. To contact FinCEN on coronavirus concerns, institutions can:
- go to www.FinCEN.gov;
- click on "Need Assistance" (located in bottom third of the homepage); and
- select "COVID19" in the subject drop-down list.
FinCEN previously encouraged financial institutions to contact the agency and the institution's respective regulator with concerns about filing required BSA reports amid the pandemic.
Stay tuned to NAFCU Today as more guidance and relief is provided to credit unions throughout the coronavirus pandemic. Access all relevant resources here.