The U.S. Financial Crimes Enforcement Network (FinCEN) on Monday issued an advisory urging banks and other financial institutions to step up detection and reporting of healthcare fraud tied to Medicare, Medicaid and other public health benefit programs, while separately proposing rules to begin paying whistleblowers who help expose major illicit-finance violations. 

FinCEN said the healthcare fraud advisory, issued in coordination with the FBI and the U.S. Department of Health and Human Services Office of Inspector General, is intended to help institutions identify suspicious transactions linked to false claims, shell companies, straw owners, kickbacks, and other schemes targeting federal and state healthcare benefit programs. The agency asked institutions filing suspicious activity reports to reference the advisory with the key term “HCF-2026-A001.” 

Bank Secrecy Act reporting on healthcare fraud rose 330 percent from 2020 through 2025 and peaked last year with more than 3,800 initial suspicious activity reports (SARs) that checked the healthcare-related field, according to the bureau advisory. The reported activity likely represents only a small fraction of the illicit conduct connected to the sector, FinCEN said. 

Separately, FinCEN said it submitted to the Federal Register a notice of proposed rulemaking to fully implement its whistleblower program, creating a framework for incentives and protections for people who provide information on fraud-related Bank Secrecy Act violations, Treasury sanctions violations, and other offenses affecting the U.S. financial system and national security. 

Under the proposal, eligible whistleblowers could receive 10 percent to 30 percent of collected monetary penalties if their information leads to a successful enforcement action by Treasury or the Justice Department, FinCEN said. The proposal also lays out procedures for submitting tips and award applications, eligibility standards and protections for whistleblowers. 

Treasury Secretary Scott Bessent said in the release that the department would reward whistleblowers who provide “timely, actionable information” on fraud, sanctions violations, and other significant illicit finance activity. FinCEN said the public will have 60 days after publication in the Federal Register to comment on the proposed rule. 

Read the FinCEN advisory here

Learn more about the proposed whistleblower program here