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FinCEN warns of EIP-related fraud, other financial crimes
The Financial Crimes Enforcement Network (FinCEN) is alerting financial institutions to fraud and other financial crimes related to economic impact payments (EIPs). The new advisory, issued Wednesday, includes descriptions of EIP fraud, associated red flag indicators, and information on reporting suspicious activity.
FinCEN indicated that the alert is part of a series published by FinCEN on pandemic-related frauds and criminal activity.
As detailed in the new alert, the types of EIP-related fraud include:
- fraudulent checks instructing individuals to call a number or verify information online in order to cash the fraudulent check;
- altered checks;
- counterfeit checks;
- theft of EIP;
- phishing schemes using EIP as a lure;
- inappropriate seizure of EIP, referencing garnishment by a private company that may have control over a person's finances.
FinCEN also issued a companion notice, consolidating COVID-19 key terms and instructions for financial institutions filing suspicious activity reports related to the pandemic.
Additional information regarding pandemic-related fraud, including advisories and notices, can be found on FinCEN's website. Financial institutions are also encouraged to register for FinCEN updates.
Relatedly, NAFCU this week joined with several other organizations to ask Congress to protect any future EIPs from garnishment.
Stay tuned to NAFCU Today for updates. Access NAFCU's coronavirus resource page, which compiles all resources – from health organizations, regulators, Congress, and the association – in one centralized location.
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