FinCEN: Counterfeit U.S. passport cards in ID theft and fraud

FinCEN has issued a Notice [FIN-2024-NTC1] on the use of counterfeit U.S. passport cards to perpetrate identity theft and fraud schemes at financial institutions. The Notice, which was coordinated with the Department of State's Diplomatic Security Service, provides an overview of typologies associated with U.S. passport card fraud, highlights 17 select red flags to assist financial institutions in identifying and reporting suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act (BSA).

FinCEN reports that, from 2018 to 2023, U.S. passport card fraud has resulted in $10 million in actual losses and $8 million in additional attempted losses with over 4,000 victims in the United States. However, DSS and other law enforcement agencies assess losses associated with U.S. passport card fraud and associated identity theft are likely significantly greater and seek increased reporting by financial institutions to identify additional illicit activity. Fraud, including financial crimes related to the use of counterfeit U.S. passport cards, is the largest source of illicit proceeds in the United States and represents one of the most significant money laundering threats to the United States, as highlighted in the U.S. Department of the Treasury’s National Money Laundering Risk Assessment, the National Strategy for Combatting Terrorist and Other Illicit Financing, and FinCEN’s Anti-Money Laundering and Countering the Financing of Terrorism National Priorities.