Sardine | USPIS Financial Crime and Fraud Investigations

What’s up, fraud fighters, and welcome to Fraud Forward.

In this episode, I am sitting down with Eric Shen, inspector in charge of the criminal investigations group for the United States Postal Inspection Service, to talk about something I think way too many fraud teams overlook: USPIS financial crime.

When financial crime escalates, most of us immediately think FBI, Secret Service, Homeland Security, or local law enforcement. And listen, those partners matter. But the Postal Inspection Service is one of the most powerful investigative partners in financial crime investigations, especially when mail theft, check fraud, mail fraud, bank fraud, identity theft, money laundering, or organized fraud networks are part of the picture.

This conversation is about more than stolen mail or missing packages. It is about how physical infrastructure still connects to modern financial institution fraud, how fraud teams can build stronger law enforcement partnerships, and why collaboration has to happen before the big case hits your desk.

Because behind every fraud case is a real person. A member. A customer. A family. A business. Someone whose trust, dignity, and financial stability may have been shaken in a way they will never forget.

And we, fraud fighters, have a responsibility to do something about that.

What you’ll hear in this episode:

A practical breakdown of how USPIS financial crime investigations work
Why the United States Postal Inspection Service matters to banks, credit unions, fintechs, and payments companies
How mail theft connects to check fraud, mail fraud, identity theft, bank fraud, and money laundering
Why physical mail still matters, even in a digital fraud environment
How organized fraud networks use stolen mail, altered checks, social media, and other channels to scale financial crime
What makes a strong fraud referral to law enforcement
Why relationship building matters before major fraud investigations happen
How IAFCI and other industry networks help financial crime investigators connect the dots
Why criminals are using social media, Telegram, and other platforms to organize fraud activity
How AI and agentic AI are changing the future of financial crime investigations
Why human oversight still matters when we use technology to fight fraud

Who should listen:

Fraud fighters at banks and credit unions
Community bank and credit union leaders
BSA, AML, fraud, and compliance teams
Fintech and payments risk teams
Financial crime investigators
Frontline teams who see suspicious activity before anyone else does
Law enforcement partners working fraud investigations and financial crime cases
Risk leaders trying to improve referral and escalation processes
Anyone responsible for fraud prevention, investigation, intelligence sharing, or victim support

This episode is for the teams who are trying to protect people in the middle of a fraud landscape that is moving fast.

Episode notes:

What USPIS financial crime investigations actually cover

The United States Postal Inspection Service is not just about stolen packages. USPIS is the oldest federal law enforcement agency, and its work touches crimes connected to the mail, including USPIS financial crime investigations involving checks, cards, letters, fraud proceeds, documents, money movement, and other mail-related activity.

And I want you to hear me on this: there may be more Postal Inspection Service relevance in your fraud investigations than you realize.

If a scam starts online but money moves through the mail, USPIS may matter. If an account is opened digitally but a card, check, or welcome letter is mailed, USPIS may matter. If checks are stolen, altered, washed, sold, or cashed through organized fraud networks, USPIS may matter.

We do not know what we do not know. That is exactly why fraud fighters need to build relationships with partners like USPIS before a major case hits.

Why mail theft and check fraud are not isolated problems

Mail theft and check fraud are not always one-off incidents anymore.

Today, these cases can connect to bank fraud, identity theft, mail fraud, money laundering, financial institution fraud, and broader organized fraud networks. Criminals are using stolen checks, recruited participants, social media, Telegram channels, and layered infrastructure to move money across institutions and avoid detection.

Check fraud has changed. Mail fraud has changed. Financial crime has changed.

If we keep treating these cases like isolated events, we are going to miss the larger network sitting behind them.

Why physical mail still matters in digital fraud investigations

Fraud may start through phishing, smishing, social media, or an online application, but physical infrastructure can still be part of the case.

Mailed checks, cards, documents, letters, crypto wallets, and fraud proceeds can all create a mail connection that matters in USPIS financial crime investigations. Fraud does not live in silos. Digital channels, physical mail, financial institutions, payment systems, and criminal networks often overlap.

That is why fraud teams should not assume a case is too digital for the Postal Inspection Service to be relevant.

What makes stronger fraud referrals for law enforcement

One institution may see one piece of a case. Another institution may see another. Law enforcement may see a pattern that no single bank, credit union, fintech, or payments company can see alone.

That is where collaboration matters.

Organized fraud networks move across institutions, channels, and jurisdictions. They do not care where one team’s visibility ends. They use that gap.

We cannot fight networked crime with siloed fraud investigations. Shared intelligence is not just helpful. It is necessary.

Why law enforcement partnerships need to happen before the crisis

Let me just assure you: a strong fraud referral is not about doing law enforcement’s job for them.

It is about giving your partners enough context to understand the pattern, the urgency, and the possible connection to broader financial crime. That can include timelines, transaction details, related accounts, known suspects, video evidence if available, communication records, check images, mail theft indicators, identity theft indicators, bank fraud patterns, connected institutions, and suspected organized fraud network activity.

The better we package the referral, the stronger the fraud investigation can become.

And y’all, that matters because the case you are looking at may be one piece of a much bigger picture.

Why financial crime is never victimless

Fraud is not just a loss number.

It never has been.

Financial crime can connect to violence, organized criminal activity, narcotics, weapons, and real harm in real communities. It is the person who lost their savings. It is the small business whose checks were stolen. It is the frontline employee trying to calm down a panicked member. It is the investigator who sees a larger pattern but needs the right partner to help connect it.

Empathy is not optional.

Neither is action.

When we talk about USPIS financial crime, mail theft, check fraud, bank fraud, identity theft, mail fraud, or money laundering, we have to remember who is actually on the other side of the case.

How AI may support financial crime investigators

AI can support fraud investigations, but it cannot replace human judgment.

Criminals can pick up new technology and move quickly. Law enforcement and financial institutions have rules, governance, oversight, and legal requirements. That gap matters.

Agentic AI, which is AI that can carry out multi-step tasks with some level of autonomy, may become a force multiplier for financial crime investigators. It can help monitor patterns, support investigative workflows, surface connections, and help teams move faster.

But the human has to stay in the loop.

We still need investigators, analysts, frontline staff, BSA teams, fraud leaders, and law enforcement partners asking the right questions and checking the work. Technology should support judgment. It should not replace it.

Key takeaways:

USPIS financial crime investigations can matter whenever a fraud case has a connection to the mail.
The United States Postal Inspection Service can support cases involving mail theft, check fraud, mail fraud, identity theft, bank fraud, money laundering, and other mail-connected crimes.
Fraud teams should not assume a case is too digital for the Postal Inspection Service to be relevant.
Mail theft and check fraud may be tied to organized fraud networks, not just isolated incidents.
Financial institution fraud often crosses banks, credit unions, fintechs, payments companies, mail channels, and digital platforms.
Strong fraud referrals help law enforcement understand the pattern, urgency, and broader financial crime connection.
Law enforcement partnerships should be built before a major fraud investigation is already underway.
Financial crime investigators need shared intelligence across institutions, agencies, and industry networks.
Check fraud investigations are stronger when teams connect mail theft indicators, account activity, related institutions, and broader fraud patterns.
AI can support fraud investigations, but human oversight, frontline judgment, and investigative experience still matter.

What to take back to your team:

Ask whether your fraud team knows when to contact USPIS.
Review your fraud referral process and identify what evidence should be preserved early.
Build or refresh your law enforcement partnerships before you need them.
Train frontline teams to recognize mail theft, check fraud, mail fraud, identity theft, bank fraud, and money laundering indicators.
Encourage investigators to participate in fraud intelligence sharing networks.
Look for patterns across institutions instead of treating every case as isolated.
Remember that every fraud case represents a real person, not just a loss number.

USPIS financial crime investigations are not just about the mail. They are about protecting victims, connecting cases, dismantling organized fraud networks, and helping fraud teams see the bigger picture.

Eric Shen brings the kind of practical, collaborative perspective this community needs. He reminds us that the strongest fraud investigations are built on relationships, shared intelligence, honest communication, and a real commitment to helping people.

Fraud is not slowing down, and neither are we.

Stay vigilant, stay informed, and keep moving fraud forward.

The Most Underrated Law Enforcement Agency in Fintech