The Financial Crimes Enforcement Network, in coordination with the U.S. State Department, today issued a notice to financial institutions on fraud schemes related to the use of counterfeit U.S. passport cards. The notice provides an overview of typologies associated with U.S. passport card fraud, lists select red flags to assist financial institutions in identifying and reporting suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act, according to FinCEN.
Red flags highlighted in the notice include blurry or color photos on passport cards, as the cards are laser-engraved to produce sharp grayscale images; the date of birth and other areas of text are flat and do not feel raised when touched; the State Department’s holographic seal is missing or substituted with one from another agency; or the smaller portrait is blurry and does not contain micro-printed text with information specific to the bearer of the card. Financial red flags include customers presenting passport cards as IDs to withdraw funds with no apparent business or lawful purpose, or using a passport as ID to withdraw funds from multiple bank branches
