The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice aimed at helping financial institutions detect and disrupt financially motivated sextortion and strengthen related Suspicious Activity Report (SAR) reporting to support law enforcement. FinCEN describes financially motivated sextortion as schemes in which perpetrators use fake personas to coerce victims into sending sexually explicit images or videos and then threaten to release the material unless paid. The Notice highlights that incidents have “dramatically increased” and that minors, particularly boys aged 14 to 17, are especially vulnerable. It cites Federal Bureau of Investigation figures showing nearly 55,000 reports of sextortion and extortion-related crimes in 2024 with total losses of USD 33.5 million, a 59% increase in reports compared with 2023, and notes an alarming number of victim suicides. The update also flags the growing use of generative artificial intelligence to create realistic “deepfake” images and videos and notes, based on Bank Secrecy Act reporting, that suspected transactions linked to the creation and purchase of illicit AI-generated content are often conducted using convertible virtual currency and other payment mechanisms such as prepaid cards. The Notice is directed broadly across financial institution types including casinos, depository institutions, insurance, money services businesses, mortgage companies and brokers, the precious metals and jewelry industry, and securities and futures firms.
Financial Crimes Enforcement Network 2025-09-08
Financial Crimes Enforcement Network issues Notice with red flags to help financial institutions detect and report financially motivated sextortion
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice to help financial institutions detect and disrupt financially motivated sextortion and improve Suspicious Activity Report (SAR) reporting. The Notice highlights a dramatic increase in sextortion incidents, particularly affecting minors, and the use of generative AI for creating illicit content. It emphasizes the role of convertible virtual currency and other payment mechanisms in these schemes, targeting various financial institutions.