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U.S. Government Financial Surveillance Hit All-Time High in 2012 — Media Fall Silent

Think back 5 years to the case of Eliot Spitzer, who then was Governor of New York and a rising political star. Some said he should run for President, but then Spitzer’s political career came to an end. When the U.S. government found out that Spitzer had been consorting with prostitutes, Governor Spitzer left office in shame.

Hold to the side for a moment whether you believe Eliot Spitzer’s activities were moral and consider how those activities were uncovered. As you may not know, Spitzer’s activities were uncovered thanks to surveillance of Spitzer that occurred without a warrant or any prior suspicion of wrongdoing on Spitzer’s part. Whether or not Spitzer’s extramarital liaisons were proper, the surveillance of Spitzer was constitutionally improper, at least under a literal reading of the 4th Amendment to the Constitution, which declares:

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

This surveillance of a person’s papers and effects occurred occurred, regardless of the constitution, without a warrant or pre-existing probable cause. It happens all the time, with the federal government tasking banks and other financial institutions across the country to engage in surveillance as a matter of routine and pass on “suspicious activity reports” for government review. As Adam Davidson of NPR reported back in 2008:

Banks monitor every transaction. Every one, no matter how small…. The software is checking to see if maybe that $4 is part of a pattern…. The report goes to a bank’s compliance officer, listing all recent suspicious transactions. Every transaction is given a numerical score…. The computer makes the score based on who is making the transaction, where does he come from, who is he associated with, what else is he up to. Every bank customer has, somewhere, in some computer database, a risk assessment score.

Eliot Spitzer’s financial activities brought him down, generating a “suspicious activity report” that brought the force of the government down. Here’s the first page of his SAR:


Copy of Eliot Spitzer Suspicious Activity Report

Further excerpts of Spitzer’s SAR get into explicit detail:


How can I be sharing these personal details with you when these details are supposed to be strictly confidential? The answer is that this sort of information leaks out from the government into the public, making all the information collected in bank surveillance not just a matter between a bank and a client, not just a matter between a bank, a client, and the government, but potentially a matter open to anybody.

The government-mandated warrantless surveillance that resulted in Governor Spitzer’s fall took place in 2007 and 2008, under the administration of President George W. Bush. Now that President Barack Obama and his Democratic Party colleagues are in control of executive branch of government, surely all this surveillance activity must have decreased, mustn’t it? After all, according to popular opinion Democrats hold individual civil liberty in greater respect than Republicans.

New data released by the Treasury Department this week show otherwise. Under President Barack Obama, the number of suspicious activity reports to the federal government rose in 2012 to a new record high.

U.S. Treasury Suspicious Activity Reports from 1996 to 2012

Postscript: The chances are good that you haven’t heard about this news from anywhere else. Only two news outlets, none of them a major print newspaper — Housing Wire and Mortgage Daily — made any report on these new statistics since they’ve been released.

If you think other Americans should know about this then you can’t sit on your hands; it’s up to you to help spread the word. Otherwise, this expansion of surveillance will float quietly down the Memory Hole.

4 thoughts on “U.S. Government Financial Surveillance Hit All-Time High in 2012 — Media Fall Silent”

  1. Dale Brent Adams says:

    May I have your permission for reprints to make a copy of this evidence to use in court to defend the civil and Constitutional rights of every American citizen?

    1. Jim Cook says:

      Mr. Adams,

      It would be far better for your case if you went straight to the source, following my links to FinCEN data provided by the U.S. government.

  2. Dave says:

    Jim, the graph starts spiking up in ’02 when legal obstacles to discovering hidden radical Islamic cell groups were overcome and allowed report activity to begin ramping up. In the shock of 9/11 no one knew how proliferate these groups might be, and so the search was on, damn the constitutional torpedoes. For Bush’s two terms the graph line climbs until Obama. Something of a platteau follows until Obama finally understands the political ramifications of NOT following suspicious activity a la Bush, and up it goes again. That’s how I read this one.

    Our nation lost it’s security in papers and effects with the introduction of the income tax and the accompanying methods for assuring compliance. We have had a long time to become accustomed to insecurity as a result of this, and it is by this time impossible to reverse. The income tax and its annual intrusion into the most intimate details of our lives has become the financial underpinning of our entire government social welfare apparatus and the most vehement opposition to its abolishment comes from the same folks who are the loudest in decrying intrusions on our civil liberties. A conundrum.

    One wouldn’t necessarily have to agree with the premise of my supposition on how we became insensitive to government surveillance to amit that we have become insensitive nonetheless. I don’t see the line on the graph heading down again until there is a really big fight about it, and I don’t see any really big fight on the horizon as long as Americans are willing to believe that increased surveillance is for their security.

  3. Horatio says:

    Once again, journalists are ignoring the real, big story.

    While Donald Trump makes a big splash with his fake claim of being spied upon with wiretapping ordered by Barack Obama, the truth is that our own government, in partnership with huge corporations, really are conducting massive surveillance against the American people.

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