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MoneyLaundering.com: FinCEN Flags Fraudulent COVID-19 Payments, Scams Against ElderlyFebruary 24, 2021
O’Melveny counsel Braddock Stevenson discussed the Treasury Department’s Financial Crimes Enforcement Network’s recent advisory note warning of fraudulent activity concerning COVID-19 economic impact payments (EIPs) in this MoneyLaundering.com article. Criminals are using both fake and verifiable EIP check schemes to swindle cash from recipients. The article notes that FinCEN advises that financial institutions should scan for fraud attempts targeting nursing home residents during the pandemic.
Stevenson, former deputy associate director of FinCEN’s enforcement division, told MoneyLaundering.com the advisory’s data demonstrates implicitly that criminals view COVID-19 as an opportunity to prey upon the US financial system. He also noted that the red flags outlined in this latest advisory showcase basic fraud and money laundering tactics, for which financial institutions are expected to monitor.
“As a reminder, some of the largest BSA [Bank Secrecy Act] fines were based on activity which occurred during the 2007 financial crisis,” said Stevenson.
MoneyLaundering.com subscribers can read the full article here.