Let’s all fight fraud without blaming individual communities

Minnesotans take pride in our strong work ethic, belief in fairness and commitment to community — values that bind longtime residents and newcomers alike. These shared principles are part of Minnesota’s civic fabric. Yet recent conversations about fraud have too often drifted away from constructive problem-solving and toward harmful generalizations about specific communities.

Fraud — whether in financial services, healthcare, government programs or online transactions — is a serious and growing problem across the country. It siphons resources from legitimate uses, raises costs for consumers and taxpayers, and erodes trust in public institutions. But it is not confined to one group, one city or one state. Fraud affects people of every background.

Recently, the U.S. Department of the Treasury announced expanded efforts to strengthen oversight and enforcement related to suspected fraud in Minnesota, including new reporting requirements for banks and money services businesses in Hennepin and Ramsey counties, along with broader investigations into certain financial transactions. These actions reflect a heightened federal focus on protecting the integrity of public and private systems, particularly when funds move across borders.

Strong enforcement is necessary. Fraud is an individual crime, and anyone — regardless of religion, ethnicity or nationality — who commits it should be held accountable under the law. At the same time, we must be careful not to equate the actions of individuals with the character of entire communities.

That distinction matters, especially when public narratives begin to single out groups like Minnesota’s Somali American community. The vast majority of Somali Americans are law-abiding residents who work hard, raise families, run small businesses and contribute to the social and economic life of our state. They value faith, family, safety and responsibility — values that closely align with those shared by Minnesotans across cultures. Generalizing based on the actions of a few not only distorts reality, it weakens community trust and undermines our state’s commitment to fairness.

The data are clear: fraud is widespread and indiscriminate. In 2024, U.S. consumers filed more than 2.6 million fraud complaints with the Federal Trade Commission, reporting losses exceeding $12.5 billion. Victims included older adults, working families and small-business owners. Cases ranged from identity theft and online scams to investment and payment fraud. No community is immune.

Government programs are also vulnerable, particularly those designed to deliver aid quickly during emergencies. The U.S. Government Accountability Office has estimated that federal benefit programs may lose hundreds of billions of dollars annually to improper payments and fraud — a challenge faced by states nationwide, not just Minnesota.

So how do we address fraud in a way that is both effective and fair?

First, prevention must be a priority. Too often, fraud is addressed only after losses occur. Strengthening early detection systems — including improved reporting at financial institutions and better analytics in government programs — can stop fraud before it spreads. When technology is paired with trained professionals, the results are far more effective.

Second, education and outreach matter. Many small-business owners and residents lack access to clear, practical information about fraud risks and warning signs. State agencies, financial institutions and community organizations should work together to provide culturally relevant education that helps people recognize, report and prevent fraud. Trusted messengers make a difference.

Third, enforcement must be paired with clarity in public messaging. Accountability should focus on individual behavior, not group identity. When rhetoric blurs that line, it discourages cooperation and makes prevention harder, not easier.

Finally, trust is essential. Minnesotans are more likely to report fraud and engage with prevention efforts when they believe systems are fair, transparent and respectful. Building that trust requires consistent outreach and inclusive problem-solving.

Fraud hurts everyone. It drains public resources, raises costs and undermines confidence in institutions that honest people rely on. Combating it requires cooperation across government, financial institutions and communities — along with a shared commitment to justice without bias.

Minnesota has long been defined by diligence, integrity and mutual respect. Upholding those values means holding individuals accountable for wrongdoing while resisting the urge to blame entire communities for the actions of a few. If we do that, we can reduce fraud and strengthen the trust that makes Minnesota work.

Said M. Elmi, a Somali American who has lived in the Twin Cities for more than 30 years, works as a risk management leader in the financial services industry.

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