Recent guidance from the U.S. Treasury Department alerting financial institutions to fraud involving disaster relief funds reflects law enforcement's mounting interest in the crime, which, according to sources, is often difficult to trace. Following a deadly fire that killed more than 40 and displaced thousands more in California, the department's Financial Crimes Enforcement Network, or FinCEN, last week issued a list of red flags associated with fraudulent claims for benefits intended for victims of hurricanes, wildfires and other natural disasters, and attempts to siphon funds from charities and peer-to-peer lending campaigns. The bureau's advisory suggests that natural disaster-related fraud has...
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