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ABA: The American Bankers Association
Compliance News

FinCEN Issues Advisory on COVID-19 Insurance Fraud Scam

The Financial Crimes Enforcement Network issued an advisory alerting banks to unemployment insurance fraud scams associated with the coronavirus pandemic. The advisory describes associated red flags and how and when to report suspicious activity.

Specific types of insurance fraud observed during the pandemic include fictitious employer-employee fraud, employer-employee collusion fraud, misrepresentation of income fraud, insider fraud and identity-related fraud.