FinCEN Aims to Expand Public-Private Partnerships Combating Fraud

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) said it aims to expand public-private partnerships by joining The National Task Force on Fraud and Scam Prevention.

Convened by the Aspen Institute Financial Security Program, the national task force brings together stakeholders from the financial services sector, technology companies, consumer advocacy groups, information sharing and analysis centers, and federal government agencies, FinCEN said in a Monday (Nov. 25) press release.

Together, these stakeholders aim to develop a national strategy for combating fraud and scams, according to the release.

“As part of its role on the Task Force, FinCEN will participate in specific working groups that will develop recommendations to include in the Task Force’s national strategy to combat fraud through cross-sector collaboration and ‘whole-of-government’ support,” the release said. “FinCEN’s participation in the Task Force furthers its efforts to expand public-private partnerships to combat fraud, scams and other illicit finance risks.”

The Aspen Institute Financial Security Program (Aspen FSP) announced in July that it would launch the task force in the fall, saying that financial fraud and scams are a growing threat that affects the economy, the financial system and national security.

The task force will address consumer education; fraud and scams prevention and detection; and recovery and prosecution, the organization said in a July 18 press release.

“We are excited to work with our partners to increase trust in our financial systems, equip individuals and families with better information and tools, and continue to safely expand services to underserved communities,” Ida Rademacher, vice president at the Aspen Institute and co-executive director of Aspen FSP, said in the release. “Together, our work can help keep money in the pockets of hardworking Americans and strengthen households’ financial security.”

Addressing one form of fraud, FinCEN issued an alert Nov. 13 warning U.S. banks about the danger of artificial intelligence (AI)-powered identity fraud schemes. The alert aims to help financial institutions spot scams associated with the use of deepfake media created using generative AI.

Reporting on another type of fraud, FinCEN said in September that mail theft-related check fraud amounted to more than $688 million in the six-month period from February 2023 to August 2023.