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By Kate Nalepinski
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Federal officials are urging all Americans to be on alert for a new wave of Medicare and Medicaid scams after the Treasury Department warned that criminals are increasingly targeting government health care benefit programs.
The Treasury said its Financial Crimes Enforcement Network (FinCEN) has issued a new advisory urging increased vigilance against scams imitating Medicare, Medicaid and other federal and state health care programs.
New Warning Tied to Scams: What to Know
FinCEN warns that scammers may contact beneficiaries with phishing‑style messages, like emails or text messages that appear connected to health care providers or benefit administrators, in an effort to get personal information or facilitate fraudulent bills.
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Criminals are exploiting Medicare and Medicaid by submitting false and fraudulent claims for reimbursement, according to the Treasury, potentially involving nonexistent or unnecessary medical services.
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FinCEN added that the schemes are often connected to broader financial crimes, like money laundering, and could involve organized crime groups.
Treasury Secretary Scott Bessent said the administration is focused on finding and dismantling these schemes. “President Trump has been clear that Americans have a right to know that their tax dollars are not being used to commit fraud,” Bessent said in a press release. "We will work with our law enforcement partners to hold perpetrators to account.”
Fraud is one of the largest sources of illicit proceeds in the U.S., per the Treasury’s 2026 National Money Laundering Risk Assessment.
FinCEN encouraged financial institutions to voluntarily report suspicious activity and notify law enforcement when potential Medicare or Medicaid fraud is identified.
What Is FinCEN?
FinCEN is a bureau of the Treasury responsible for protecting the financial system from illicit activity. The agency collects and analyzes financial intelligence and shares it with law enforcement and other government partners.
How Are Whistleblowers Involved in the New Policy?
FinCEN has proposed a new rule, Whistleblower Incentives and Protections, which establishes a formal framework to pay whistleblowers who provide actionable tips related to financial crimes like Medicare fraud.
Under the proposal, eligible whistleblowers could receive from 10 percent to 30 percent of collected monetary penalties if their information leads to a successful enforcement action by the Treasury or Department of Justice.
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