The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an advisory on Mar. 30 urging financial institutions to watch for fraud schemes aimed at government health care benefit programs such as Medicare and Medicaid. The move comes after Treasury Secretary Scott Bessent announced steps earlier this year to detect and stop benefits fraud across the country.
The topic is significant because fraudulent claims drain taxpayer resources and threaten the integrity of federal health care systems that serve millions of Americans.
Secretary Bessent said, “President Trump has been clear that Americans have a right to know that their tax dollars are not being used to commit fraud. Under President Trump’s leadership, Treasury will continue to find and disrupt fraud schemes wherever they exist, and we will work with our law enforcement partners to hold perpetrators to account.”
According to FinCEN, its new advisory outlines how organized crime groups—including transnational criminal organizations—are exploiting federal and state health care benefit programs through complex scams involving false claims for reimbursement. These operations often use non-resident aliens as straw owners of shell companies registered as health care providers or suppliers. Fraudsters obtain beneficiary information illegally, file false claims, and launder reimbursements through various channels including wire transfers, digital assets, or complicit insiders at financial institutions.
FinCEN reported a 20% increase in suspicious activity reports related to health care in 2025 compared with 2024 following President Trump’s pledge to eliminate nationwide fraud. However, officials believe these reports represent only a small portion of actual illicit activity connected with health care fraud in the United States.
The advisory was developed alongside the Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG). It encourages voluntary reporting by financial institutions when suspicious activity is detected.
In addition, FinCEN unveiled a proposed rule that would allow eligible whistleblowers who provide actionable tips about violations such as money laundering or sanctions breaches to receive between 10% and 30% of monetary penalties collected from enforcement actions brought under relevant laws by Treasury or the Department of Justice. A dedicated webpage has also been launched for confidential whistleblower tips on suspected financial crimes related to government benefit programs.
Questions about the advisory can be directed via www.fincen.gov/contact.
