FinCEN AND BUSINESS EMAIL COMPROMISE FRAUD ADVICE AND RED FLAGS – SAR INDICATE MORE THAN $300 MILLION A MONTH IN THEFT

A news release from FinCEN on 16th July announced new efforts to curtail and impede business email compromise (BEC) scammers and other criminals who profit from their schemes.  Based on data from FinCEN’s Suspicious Activity Reports (SAR), hackers and other illicit actors’ BEC scams generated more than $300 million a month in 2018.

Separately, it issued an updated Advisory to Financial Institutions on E-mail Compromise Fraud Schemes (see below).

It also published Financial Trend Analysis of Bank Secrecy Act (BSA) Data, which examined methodologies used – saying use of fraudulent vendor or client invoices is the most common ruse, impersonation of an outside entity accounted for 20% and that manufacturing and construction businesses were the top targets for BEC fraud in 2017 and 2018.

The news release also mentioned that the Egmont Group of FIU had published a Public Bulletin to alert competent authorities and reporting entities of key typologies and money laundering risks associated with BEC fraud schemes.

https://www.fincen.gov/news/news-releases/fincen-exchange-forum-counters-business-email-compromise-scams

The FinCEN Advisory is at –

https://www.fincen.gov/resources/advisories/fincen-advisory-fin-2016-a003

This explains how BEC schemes work, and provides various “red flags” that might alert one.

The Egmont Group Public Bulletin is at –

https://egmontgroup.org/en/content/new-publication-egmont-group-bulletin-business-email-compromise-fraud

 

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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