Regulatory Alerts2016-09-06
Advisory to Financial Institutions on E-mail Compromise Fraud Schemes
The Financial Crimes Enforcement Network (FinCEN) issued this advisory to help financial institutions identify and prevent Business E-mail Compromise (BEC) and E-mail Account Compromise (EAC) fraud schemes that have resulted in billions of dollars in losses. The document outlines the three-stage mechanics of these crimes, details specific red flags for detecting fraudulent wire transfer instructions, and provides guidance on implementing multi-faceted transaction verification processes. Financial institutions are instructed to file Suspicious Activity Reports (SARs) using specific key terms and to report incidents to law enforcement within 24 hours to maximize the potential for fund recovery.
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