02.10.26
Suspicious Activity Filings Spiked Two-Thirds in 2025
by: Michael Taffe
In 2025, suspicious activity reports (SARs) filed by broker-dealers to the Financial Crimes Enforcement Network surged nearly 55% to over 95,000, driven by both rising fraud and more proactive compliance. Cybercrime, account takeovers, elder abuse and identity theft were key growth areas, reflecting increased detection from advanced monitoring technology and AI tools. Industry experts note many firms file defensively to avoid regulatory penalties, sometimes inflating reports beyond actual risk. While regulators urge a focus on quality over quantity, defensive filing remains entrenched, complicating the identification of genuine financial crime patterns. The trend underscores tensions between enforcement incentives, technology-enabled surveillance and effective fraud detection in wealth management.
Read the full article on Financial Advisor IQ