Treasury Lets Banks Share Video, IP Data After $2.5 Billion Payroll Fraud Surge
Updated
Updated · New York Post · Jun 13
Treasury Lets Banks Share Video, IP Data After $2.5 Billion Payroll Fraud Surge
3 articles · Updated · New York Post · Jun 13
Summary
$2.5 billion in suspicious payroll-tax fraud activity in 2025 drove Treasury to let banks share customer surveillance video and cyber data, including IP addresses, to track cartel financiers and immigration-fraud rings.
FinCEN said the Patriot Act-based change lets banks collaborate on suspicious cases and pass stronger leads to federal authorities, with red flags including sudden new pay recipients, large transfers and logins from distant locations.
The move follows last week's FinCEN advisory urging banks to report signs tied to unlawful immigrant labor, shell companies, labor brokers and identity theft as part of a broader Trump administration fraud crackdown.
Treasury said banks are not being asked to collect citizenship status or act as immigration officers, though ignoring FinCEN advisories can still carry regulatory risk and penalties.
How will new data-sharing rules affect financial privacy and access to banking for millions?
What are the real costs of enforcing immigration policy through the financial system?
U.S. Banks Face New Mandates on Immigration Status: 2026 Rules, Compliance Challenges, and Civil Liberties Risks
Overview
In 2026, President Trump signed an executive order that launched a new framework for U.S. banks, requiring them to play a more active role in identifying financial risks linked to non-work authorized populations. This move was framed by the White House as a way to combat fraud and address the risk of unrepaid loans if undocumented borrowers are deported. The order directed the Consumer Financial Protection Bureau to clarify that lenders can consider factors like potential deportation and loss of wages when assessing a borrower's ability to repay. As a result, banks now have explicit permission to factor these risks into their lending decisions.