The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) and the Department of State's Diplomatic Security Service (DSS) have jointly issued a Notice to financial institutions regarding the increasing use of counterfeit U.S. passport cards in identity theft and fraud schemes.
FinCEN Director Andrea Gacki expressed gratitude for the partnership with DSS, stating, "FinCEN appreciates our partnership with DSS to highlight what is a concerning increase in the use of U.S. passport cards by illicit actors to impersonate and defraud individuals at financial institutions across the country." Gacki emphasized the importance of the Notice in helping financial institutions and customers avoid falling victim to such crimes.
DSS Deputy Assistant Director Greg Batman reiterated the commitment of the Diplomatic Security Service to safeguarding the American people and financial institutions, stating, "We hope this Notice will help financial institutions recognize fraudulent passport cards and their unlawful use."
The Notice outlines typologies associated with U.S. passport card fraud, provides red flags for identifying suspicious activity, and reminds financial institutions of their reporting obligations under the Bank Secrecy Act. It aims to raise awareness and vigilance among financial institutions in detecting and reporting fraudulent activities related to counterfeit U.S. passport cards.
According to the Notice, from 2018 to 2023, U.S. passport card fraud has led to $10 million in actual losses and $8 million in attempted losses, impacting over 4,000 victims in the United States. However, law enforcement agencies believe the actual losses from U.S. passport card fraud and associated identity theft are likely higher and are encouraging increased reporting by financial institutions to uncover more illicit activities.
The U.S. Department of the Treasury's National Money Laundering Risk Assessment and other strategic documents highlight that financial crimes related to counterfeit U.S. passport cards are a significant source of illicit proceeds and pose a substantial money laundering threat to the United States.
The full Notice can be accessed online at FIN-2024-NTC1.
