COVID-19 Medical Scam Red Flags – Train Your Frontline to Keep You Informed
There is seemingly no better time to scheme and scam than in the midst of a pandemic. On May 18th, FinCEN released an advisory regarding the uptick in reported activity related specifically to fraudulent cure, vaccine, and testing services; non-delivery scams; and price gouging.
Its important for BSA personnel to be aware of the red flag indicators issued by FinCEN, and it is equally important to share the red flags with personnel throughout the institution to ensure they can identify potentially suspicious activity and know to refer it to the BSA Department. Make sure the departments handling wire transfers, ACH originators, and Regulation E disputes know that some red flag indicators include a large incoming wire to a new commercial account, high chargebacks and return rates in customer accounts, and disputes filed for non-delivery of promised products deserve a closer look and a call to the BSA Department. Ensure branch personnel are aware of account opening fraud, including new commercial customers unable to present legitimate organizational documentation or unwilling to disclose a clear and verifiable nature of business.
The red flags may be similar to the red flags of old, but they require our review and consideration in light of the new opportunity COVID-19 has given to fraudsters.
To see a complete listing of red flags, refer to https://www.fincen.gov/sites/default/files/advisory/2020-05-18/Advisory%20Medical%20Fraud%20Covid%2019%20FINAL%20508.pdf.
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