Bank reports help FinCEN identify $270M in possible student aid schemes

Reports from banks and other financial institutions have helped identify about $270 million in federal aid funds linked to suspicious financial activity, the US Treasury Department said Monday.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a July 2026 alert to financial institutions warning them to “be vigilant” and to flag suspicious activity linked to student aid. Schools often send the aid funds to students’ bank accounts electronically, with the word “refund” spelled out, the Treasury said in a press release Monday.