FinCEN Advisory on Health Care Fraud Targeting Medicare, Medicaid, and Federal Health Programs

FinCEN News

Published March 30th, 2026

Detected March 31st, 2026

Summary

FinCEN issued an advisory on health care fraud schemes targeting Medicare, Medicaid, and other federal and state health care benefit programs. The advisory provides financial institutions with an overview of fraud tactics used by fraudsters, organized crime groups, and transnational criminal organizations, along with money laundering typologies and red flag indicators. Financial institutions are strongly encouraged to voluntarily report suspicious activity to FinCEN and immediately notify law enforcement.

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What changed

FinCEN has issued an advisory warning financial institutions about health care fraud schemes targeting government health care benefit programs including Medicare and Medicaid. The advisory documents how fraudsters, organized crime groups, and transnational criminal organizations are exploiting these programs and outlines money laundering typologies and red flag indicators to assist institutions in identifying suspicious activity.

Financial institutions should review the advisory, update AML monitoring systems to incorporate the new fraud typologies and red flags, and ensure staff are trained to recognize suspicious patterns. Institutions are strongly encouraged to voluntarily file Suspicious Activity Reports (SARs) with FinCEN and immediately notify law enforcement when potential health care fraud is identified. No specific compliance deadline is stated as reporting remains voluntary.

What to do next

Review FinCEN advisory and update AML monitoring systems with new health care fraud typologies and red flags
Train compliance and front-line staff on recognizing fraud schemes targeting Medicare, Medicaid, and state health programs
File SARs with FinCEN and notify law enforcement when suspicious health care fraud activity is identified

Source document (simplified)

FinCEN Issues Advisory on Health Care Fraud Schemes Targeting Medicare, Medicaid, and Other Federal and State Health Care Benefit Programs

Immediate Release

March 30, 2026

Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an Advisory urging financial institutions to be vigilant about health care fraud schemes targeting government health care benefit programs such as Medicare and Medicaid. FinCEN’s Advisory provides financial institutions with an overview of how fraudsters, organized crime groups, and, increasingly, transnational criminal organizations are targeting government health care benefit programs. It also highlights money laundering typologies and red flag indicators to help financial institutions identify and report suspicious activity. Today’s Advisory strongly encourages financial institutions to voluntarily report suspicious activity to FinCEN and immediately notify law enforcement of such activity.

Treasury Press Release

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