FinCEN Issues Warning on COVID-19 Medical Scams, Notice on Reporting

The Financial Crimes Enforcement Network today issued an advisory on medical scams related to the coronavirus pandemic—the first in a new series of warnings about COVID-19-related financial crimes—as well as a notice on filing reports of COVID-19-related suspicious activities.

The notice reminds banks of their Bank Secrecy Act reporting obligations while “recogniz[ing]“that current circumstances may create challenges with respect to certain BSA obligations, including the timing requirements for certain BSA report filings.” It provided information about what banks should include in suspicious activity reports during the pandemic and provides contacts for reporting suspected COVID-19-related crimes to other agencies.

FinCEN also released an advisory documenting 22 red flags for COVID-19-related medical scams, including fraudulent treatments or tests, non-delivery of medical goods, price gouging and hoarding. The advisory also provides case studies of these kinds of scams.