“SARry” About This, But Fraud Is Increasing

A new report from the Financial Crimes Enforcement Network (FinCEN) indicates that financial fraud is continuing to blossom. The report shows a continued overall rise in Suspicious Activity Report (SAR) filings including an increase in depository institution filings related to all seven areas of suspected fraud listed on the SAR form. These seven areas, out of a total of 20 different violation types tracked, accounted for nearly half of the increase in total SAR filings from 2007 to 2008, with all of the fraud categories seeing double digit increases in percentage of filings in 2008. These categories are: 

1. check fraud,
2. mortgage loan fraud,
3. consumer loan fraud,
4. wire transfer fraud,
5. commercial loan fraud,
6. credit card fraud, and
7. debit card fraud.

FinCEN analysis of the data suggested some possible reasons for the increases. Fraud may be reported in association with other suspected crimes, or a SAR may indicate several types of suspected fraud being perpetrated by the same suspect. For instance, of the total number of reported instances of identity theft SARs filed by depository institutions, approximately 35 percent were listed in combination with credit card fraud and/or one or more other violations such as check fraud or consumer loan fraud.