U.S. financial surveillance faces scrutiny over DHS predictive policing

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US financial surveillance scrutiny

Highlights

DHS aggregates and analyzes Americans’ financial activity data for predictive policing, raising constitutional concerns regarding presumption of innocence and data transparency.
A Border Patrol Predictive Intelligence Targeting Team flagged Kyle William Olson in Montana based on undisclosed financial patterns, later leading to marijuana discovery by police.
A 2024 Congressional report and references to policies under President Trump highlight bipartisan risks of financial surveillance being used for political targeting and underscore calls for DHS oversight.

DHS data use and constitutional concerns

As argued in an opinion piece published by CoinDesk, recent reporting indicates that DHS aggregates Americans’ financial activity data, analyzes it and provides local law enforcement with tips on potential suspects through predictive policing methods.

The article says this approach relies on broad surveillance and allows the state to build narratives from personal data, including transaction histories, before any wrongdoing is proven. It argues that such use of financial records undermines the presumption of innocence and raises constitutional concerns about how law enforcement identifies targets.

One example cited is the case of Kyle William Olson in Montana, where a Border Patrol Predictive Intelligence Targeting Team, or PITT, allegedly flagged financial activity patterns said to be linked to illicit narcotics activity. A DHS memo referenced in the criminal case, and shared with 404 Media, reportedly did not explain what records were reviewed or how the information was obtained, even though police later found marijuana in Olson’s vehicle.

The piece also points to the Financial Crimes Enforcement Network, or FinCEN, as a possible source of such financial information. Under the Bank Secrecy Act, financial institutions must keep records and report certain large or suspicious transactions, which FinCEN can share with other federal agencies for regulatory purposes.

Political targeting risks and policy demands

The article argues that financial surveillance does not necessarily improve public safety and instead can expose personal beliefs, associations and preferences that may be used for discrimination or political targeting. It frames this risk as broader than one administration or political faction.

It cites a 2024 Congressional report that described pressure on banks from FinCEN and the FBI after the January 6 attack on the U.S. Capitol to identify signs of extremism through spending patterns associated with conservative views. It also points to a 2025 executive order by President Trump designating Antifa as a domestic terrorist organization, followed by a White House memo directing law enforcement to identify and disrupt financial networks linked to domestic terrorism and political violence.

The opinion piece calls for DHS to end PITT’s use of financial information and other data in predictive policing. It also urges Congress to have the Government Accountability Office audit DHS data sources, targeting criteria, retention practices, false-positive rates and information-sharing, and to publish the findings.

Our earlier report on the Senate Banking Committee’s TRIA reauthorization effort explained how lawmakers were moving to extend the post-9/11 terrorism insurance backstop ahead of its 2027 expiration, with discussion of potential updates for emerging risks like cyber and nuclear threats. It also outlined how the same committee agenda paired TRIA with a contentious push to advance President Trump’s nominees for top roles at the CFPB, Commerce, and HUD, highlighting concerns about consumer-finance enforcement and broader regulatory oversight.

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