FinCEN Alert on Nationwide Surge in Mail Theft-Related Check Fraud Schemes Targeting the U.S. Mail

The Financial Crimes Enforcement Network (FinCEN) has issued a new alert in connection with the „Nationwide Surge in Mail Theft-Related Check Fraud Schemes Targeting the U.S. Mail“. The alert is addressed at financial institutions to make them aware of this surging fraud scheme and the methods perpetrators use to scam clients. The alert thereby briefly describes the typical typology of the scheme which generally involves the theft of personal checks (e.g. social security checks, unemployment checks), the „fraudulent negotiation of the stolen checks“, and the subsequent use of stolen personal information for purposes of bank or investment account or credit card withdrawals or payments.
Additionally, the alert contains red-flags that financial institutions shall look out for such as unusual account withdrawals or unusual check deposits – particularly when looking at a client’s transaction history. Finally, the alert provides guidance to institutions as to the reporting of suspicious account activities and their obligations in this context.
For details on the alert, please consult the attached document or follow above noted link.