On July 7, 2020, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) released its second advisory to financial institutions about detecting and preventing COVID-19 consumer fraud. The guidance provides financial institutions with 18 new red flag indicators to help identify potential imposter and money mule pandemic fraud. FinCEN plans to continue issuing additional advisories about financial crimes related to the pandemic based on evolving trends.
Red Flags of Potential COVID-19 Fraud
FinCEN’s second guidance offers red flags for two different types of COVID-19-related consumer fraud: imposter scams and money mule schemes. Both involve bad actors deceiving victims by posing as federal government agencies, international aid organizations, or other charities.… Read More