WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) has issued an advisory alerting financial institutions over the rise in fraud and other financial crimes related to Economic Impact Payments (EIPs).
The advisory is based on FinCEN’s analysis of COVID-19-related information obtained from Bank Secrecy Act (BSA) data, public reporting, and law enforcement partners.
FinCEN said the types of EIP-related fraud being seen 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.