Treasury Secretary Scott Bessent stated that the Trump administration has received over 700 tips through the Treasury Department’s reporting platform as the agency announced new initiatives aimed at uncovering fraud related to Medicare, Medicaid, and other government health programs.
Bessent mentioned that efforts to combat fraud are expanding quickly, making an analogy to airport security: “If you see something, say something.” He highlighted that financial institutions are increasingly becoming the “first line” in recognizing financial fraud, noting a 20% rise in reports of suspicious activities since President Donald Trump and Vice President J.D. Vance took office.
He pointed out unusual transfers involving nonprofits, like daycare centers and hospice providers. Bessent remarked, “When they start tossing around large round numbers, that raises flags.” The Treasury Department has received more than 700 leads through its reporting system, many of which are currently under investigation. He added that whistleblowers could receive rewards of up to 30% of the funds recovered.
On Monday, the Treasury announced a new initiative aimed at battling fraud across Medicare, Medicaid, and other health programs. FinCEN, the Financial Crimes Enforcement Network, issued a warning to banks and financial institutions about organized crime groups using shell companies and straw owners to carry out fraudulent claims. The advisory mentioned that fraudsters often engage in “non-existent, exploitative, substandard, or unnecessary medical care” and use “kickbacks and bribes to medical professionals” to gain access to beneficiary information and perform fraudulent transactions with the federal government.
Bessent remarked in a statement, “President Trump has made it clear that Americans have a right to ensure their tax dollars are not misused.” He affirmed that under Trump’s direction, the Treasury Department would continue to identify and disrupt fraudulent schemes, collaborating with law enforcement to hold wrongdoers accountable.
FinCEN reported that illegal funds are often funneled through the financial system using wire transfers, digital currencies, and various laundering methods, sometimes with the involvement of insiders at financial institutions. Officials at the Treasury cautioned that reports of suspicious healthcare practices rose by 20% in 2025 compared to the previous year, although these reports represent only a small portion of fraud occurring across the nation.
The advisory, developed in partnership with the FBI and the Department of Health and Human Services Inspector General, urged financial institutions to quickly report suspicious transactions and alert law enforcement immediately. FinCEN noted that fraudsters and transnational criminal organizations are exploiting government health benefit programs such as Medicare and Medicaid to submit false reimbursement claims, often using nonresident aliens as front owners in newly created healthcare companies.
Additionally, the Treasury announced that FinCEN has proposed formal rules for a new whistleblower program that would reward those who provide valuable information related to fraud, money laundering, sanctions violations, and other financial crimes. Bessent previewed the proposal during his visit to Minnesota, which would allow eligible whistleblowers to claim between 10 and 30 percent of fines collected from successful enforcement actions. FinCEN explained that the purpose of the rule is to establish “procedures for whistleblowers to submit information” and to provide “protections for whistleblowers who engage with FinCEN.”
The dedicated FinCEN portal, launched in February, is already receiving sensitive information from both public and financial institutions. The Treasury indicated that any rewards would be sourced from fines recovered under the Bank Secrecy Act and the International Emergency Economic Powers Act.
This latest action by the Treasury builds on Bessent’s earlier commitment made in January. It comes as federal investigators intensify their examination of a growing fraud scandal in Minnesota, which involves allegations of misappropriation of childcare, food aid, and welfare funds. Bessent commented at the time, “We know these rats are hostile to each other.”
