According to the USA's State Department's Bureau of Consular Affairs, "The U.S. passport card is a wallet-sized, plastic passport that has no visa pages. The card is proof of U.S. citizenship and identity and has the same length of validity as the passport book. The card is for U.S. citizens who travel by land and sea from Canada, Mexico, Bermuda, and Caribbean countries. The card is not valid for international travel by air and is cheaper than the passport book." It is also an identification card for domestic flights, allowing passengers to use a fast-track lane at security.

In a notice yesterday, FinCEN says "since 2018, DSS has identified a [significant] increase in the use of counterfeit U.S. passport
cards by individuals and fraud rings to gain access to victim accounts at financial institutions nationwide. This fraud occurs in person at financial institutions and involves an individual impersonating a victim by using a counterfeit U.S. passport card that contains the victim’s actual information. "

So, it's the use of fakes of an official government identification document with real information relating to a third party. It is difficult to see where FinCEN's concern has been alerted beyond those that already exist in relation to fake driving licences and other official, or authoritative, documents.

Where there is an interest it appears to be where there is a form of duplication of identity while the original person has not lost possession of the card.

So, it's absolutely nothing new. Indeed, as FinCEN admits, it has been aware of this since 2018 so it's not novelty, it's scale that has led to the warning.

The warning should, perhaps, be regarded as a reminder rather than as something new and important. Awareness of the use of fake identification is, after all, ingrained into American culture as teenagers, if Hollywood is to be believed" carrying fake documents to get into clubs or to buy alcohol.

But there is one reason that FinCEN is right to raise the issue: the card must, initially, be applied for in person. Renewals can be done without attendance. So there is degree of authority in the card and that's why financial institutions like it.

FinCEN says "From 2018 to 2023, U.S. passport card fraud has resulted in USD10 million in actual losses and USD8 million in additional attempted losses with over 4,000 victims in the United States. However, the Diplomatic Security Service and other law enforcement agencies assess losses associated with U.S. passport card fraud and associated identity theft are likely to be significantly greater and seek increased reporting by financial institutions to identify additional illicit activity. Fraud, including financial crimes related to the use of counterfeit U.S. passport cards, is the largest source of illicit proceeds in the United States and represents one of the most significant money laundering threats to the United States."

But, non-passport border passes are a global feature in border areas. Often, people have family on both sides of the border or, even, live in one country but work in the other, commuting daily. A simplified border pass is an essential part of their daily lives and, as in this case, a significant cost saving as against a full passport.

So the bigger issue here is whether the USA considers the withdrawal of the passport card and whether other countries feel they must review it, too, perhaps by mutual recognition of national identity cards for border crossing without the need for a separate identification for that purpose. That will, of course, depend on allowing access to data by a foreign country, which might not sit well with many.

The notice is here: https://www.fincen.gov/sites/default/files/shared/FinCEN_Notice_Counter…