Davis Polk partner Dan Stipano discussed the increased number of suspicious activity reports (SARs) being filed by financial institutions with Thomson Reuters Regulatory Intelligence.

“The increase appears to be driven primarily by the epidemic of fraud in the financial system,” Dan explained. “Check fraud, credit/debit card fraud, and ACH and other payment-related frauds are all at exorbitant levels.”

He also noted that the prevalence of online transactions and remote payment platforms are contributing factors as well, as are improved systems for identifying and reporting fraud and other forms of suspicious activity.

“Record-setting suspicious activity report tally in March due to pervasive fraud, better compliance - U.S. officials,” Thomson Reuters Regulatory Intelligence (May 3, 2023) (subscription required)

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