The U.S. Department of the Treasury has issued a warning about a surge in Medicare and Medicaid scams, urging Americans to remain vigilant against fraudulent schemes targeting government health care programs. The Treasury’s Financial Crimes Enforcement Network (FinCEN) released an advisory highlighting the growing threat of phishing-style messages, false claims, and money laundering tied to these programs.
Immediate Action & Core Facts
New Warning on Scams: FinCEN has alerted the public to an increase in fraudulent activities, including phishing attempts and false claims for reimbursement. Criminals are exploiting Medicare and Medicaid by submitting bills for nonexistent or unnecessary medical services.
Whistleblower Portal Launched: The Treasury has established a portal for reporting abuse of government health benefit programs, emphasizing the role of transnational criminal organizations in these schemes.
Deeper Dive & Context
How the Scams Operate
According to the Treasury, fraudsters create fake health care providers, use cover people to pose as owners, and steal personal data to submit false claims. Proceeds are then laundered through wire transfers, digital assets, and complicit banks before being transferred overseas.
Government Response
Treasury Secretary Scott Bessent stated that the administration is committed to dismantling these schemes, citing President Trump’s emphasis on protecting taxpayer dollars. FinCEN has encouraged financial institutions to report suspicious activity and collaborate with law enforcement.
Broader Implications
Fraud is a significant source of illicit proceeds in the U.S., as noted in the Treasury’s 2026 National Money Laundering Risk Assessment. The advisory underscores the need for heightened vigilance and cooperation among law enforcement agencies.
FinCEN’s Role
FinCEN, a bureau of the Treasury, is responsible for protecting the financial system from illicit activity. The agency collects and analyzes financial intelligence, sharing it with law enforcement and government partners.