FinCEN alerted financial institutions to potential indicators of pandemic-related imposter scams and money mule schemes.
FinCEN described the following forms of fraud:
Imposter Scams. Imposter scams involve criminals that seek payments or personal information via email, robocalls, or text messages while impersonating a government agency or charity. FinCEN cited scams in which criminals pose as representatives of the Internal Revenue Service, the Centers for Disease Control and Prevention, the World Health Organization, other non-profit groups, or academic institutions. FinCEn warned that imposters may attempt to obtain personal details by claiming that the information is needed to process a COVID-19-related stimulus payment, or as part of contact tracing efforts.
Money Mule Schemes. Money mules are "person[s] who transfer[] illegally acquired money on behalf of or at the direction of another." FinCEN identified schemes that involve criminals recruiting money mules by posing as "good Samaritans," romantic interests, or employers with work-from-home opportunities.
FinCEN advised financial institutions to identify and report these fraudulent activities.
Commentary Christian Larson
Scams of this type are nothing new, but many bank customers have become more vulnerable to them during the COVID-19 pandemic. The FinCEN advisory provides detailed instructions for financial institutions to report COVID-19-related imposter scams and money mule schemes in suspicious activity reports.
Originally published July 07, 2020.
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