Regulatory Alerts2026-07-24 | FIN-2026-Alert004Added
FinCEN Alert on Fraud Schemes Targeting Federal Student Aid (FIN-2026-Alert004)
FinCEN requests that financial institutions reference Alert FIN-2026-Alert004 in Suspicious Activity Report (SAR) field 2 by including the key term “FIN-2026-FSAFRAUD” and in SAR field 34(z) by including the term “Federal Student Aid Fraud.” The alert urges financial institutions to detect and report suspicious activity connected to fraud schemes targeting the U.S. Department of Education’s Office of Federal Student Aid programs, which involve the use of stolen identities, ghost students, and complicit straw students to unlawfully acquire funds. The document outlines specific red flag indicators, such as refunds received by customers with no enrollment history or rapid transfers of refund funds to digital assets or international money services businesses, to assist institutions in identifying illicit activity.