FinCen

Despite advances in technology, check fraud is on the rise across the US. Given the significant impact on CFIs and their customers, we suggest ways in which CFIs can reduce exposure to fraudulent activity.

CFIs of all sizes employ various strategies to successfully prevent and detect check fraud. But could another strategy be to go upstream and encourage business customers to adopt digital payments?

Federal authorities have issued an alert about a financial scam called “pig butchering", in which victims are lured into investing in phony schemes, often involving crypto currency. The losses can be significant. We provide tips on how to identify these scammers, if they contact you.

It’s not enough to have a robust program to comply with the Bank Secrecy Act and anti-money laundering regulations — CFIs are required by regulation to also routinely audit whether their programs are truly adequate enough to thwart nefarious acts like drug trafficking and terrorism. We share details of an appropriate auditing process.

Thefts of mailed checks have soared since the start of the pandemic as stimulus checks attracted crooks and accelerated check fraud schemes. We discuss why and what to look for to prevent mailed check theft from affecting your customers.