Regulatory Alerts2019-07-16
Updated Advisory on Email Compromise Fraud Schemes Targeting Vulnerable Business Processes
The Financial Crimes Enforcement Network (FinCEN) issued this updated advisory to alert financial institutions to evolving business email compromise (BEC) fraud trends and expanded operational definitions that now encompass non-business entities and alternative payment methods like virtual currency. The document highlights that over $9 billion in attempted thefts have affected U.S. financial institutions since 2016, with manufacturing, commercial services, and real estate sectors facing the highest concentration of attacks targeting vulnerable payment authorization and communication processes. FinCEN directs institutions to update their AML/CFT frameworks to incorporate these expanded fraud definitions and implement stronger authentication protocols while leveraging Section 314(b) safe harbor protections to share intelligence on perpetrators and money laundering networks.