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How EY can help
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Whether facing acts of fraud, governmental or regulatory inquiries, breach-of-contract claims or litigations, organizations rely on EY Forensic Data Analytics (FDA) teams for assistance.
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According to the Financial Crimes Enforcement Network (FinCEN) SAR statistics, of the 4.9 million SARs filed in 2023, 2.2 million were related to fraud.² Based on these numbers, financial institutions are filing fraud-related SARs more than ever, but the filings are concentrated with just a few institutions. Fraud-related SAR filings are projected to increase drastically with the rise in fraud scams and attacks.
Recent fraud scams and attacks
Whether your institution has a dedicated fraud SAR filing unit or makes referrals to the anti-money laundering team, it is important to be mindful of the types of fraudulent activity that require reporting. Common types of fraud that go unreported include:
- Account takeover
- SIM swapping
- Imposter scams
- Check fraud
- Business and job opportunity scams
- Prepaid card account takeover
- Large-scale fraud rings
- Micro-deposit harvesting
- Love or romance scams
- Goldendoodle scams
- Prize or inheritance scams
- Investment schemes
- Phishing and smishing
Actions to take now
The EY Forensic & Integrity Services team has identified immediate actions that can promote a culture of compliance related to fraud SAR filing obligations:
- Report suspicious activity if your institution is the victim of an organized fraud attack, often referred to as a large-scale event.
- Measure and track fraud scams and attack types to enhance reporting that can identify vulnerabilities, customer education opportunities and potential bank reimbursement responsibilities.
- Test the referrals process between the business unit that identifies fraud and the team responsible for SAR filings to verify that SARs are filed appropriately and timely.
- Invest in modernization efforts through the implementation of new tools for tracking scams and attacks as well as their associated losses to drive prevention strategies.
- Conduct trend analysis to identify fraudulent accounts and their nexus to larger fraud rings and schemes.