Feds warn banks to look out for construction fraud

Dive Brief:
Feds are cracking down on financial fraud in the construction industry. The Financial Crimes Enforcement Network, part of the U.S. Treasury Department, issued a notice to financial institutions Wednesday, highlighting an increase in state and federal payroll tax evasion and workers’ compensation fraud by U.S. construction businesses.
State and federal tax authorities lose hundreds of millions annually to these types of schemes, according to the announcement.