10 Best Practices You Should Implement For Internal Fraud
Internal Fraud is something most banks hate to talk about but they all have experienced. Whether they know it or not, they have. I spent 2 years as an Internal Fraud Investigator with a major bank. My job was to develop policies and procedures for dealing with internal fraud and for monitoring home grown detection […]
Fifth Third Bank Gets Hit By Internal Employee Fraud Ring
It appears that Fifth Third Bank has been stung by an employee fraud ring that stole customer information. Fifth Third reported that customer information was stolen by a group of employees who sold the information to people outside of the company. Thos people than used the stolen customer information to set up fraudulent credit accounts […]
SWIFT Fraud is Rising According to New Report
A new report released today by EastNets reveals that SWIFT related fraud attempts are on the rise and not declining. According to the report, SWIFT payment fraud is on the rise, and there is strong evidence that banks are not adequately preparing themselves to combat the threat. In addition to various high-profile incidents of bank […]
Massive Internal Fraud Cost DJI $145 Million
DJI, a popular Chinese manufacturer of drones, has identified over 1 billion yuan (US$145 million) of internal fraud committed by 45 employees. The massive internal fraud was unearthed after an internal probe identified employees were inflating the cost of parts and pocketing the difference for their own gain. This type of fraud, which is often […]
3 Lenders Profits Hit Hard By Same Insider Fraud
American Banker reported that 3 separate lenders warned of massive profit hits suffered as a result of a single commercial loan fraud scheme. The lenders; Fulton Financial, Univest, and Franklin Financial all submitted separate regulatory filings warning that their 2nd Quarter profits were going to take a significant hit as a result of write downs […]
$1.8 Billion Dollar Internal Fraud Discovered at PNB
Do you think Internal Fraud is not a big deal at banks? Most banks I know don’t think they will ever get hit. But Punjab National Bank in India might change your mind. In the last week they discovered a $1.8 billion dollar fraud. 3 employees were arrested. And the bank branch where the theft […]
Employee Reports Fake Accounts – No One Listens
Have you heard the phrase, “If a tree falls in the forest and no one hears it, did it actually make a sound ?” It’s a mind bender but it makes you stop and think – was a sound made? I would change that phrase just a little bit and say, “If an employee reports […]
How the Dark Web is Fueling Internal Fraud
There is nothing fraudsters love more than anonymity. They love to carry out their schemes with nobody ever having a clue of what they are doing. The Dark Web gives fraudsters a place where they can buy and sell stolen data without ever being traced. It is a perfect place for them to operate. According to experts, it […]
Toxic Sales Culture Leads to Massive Firing at Wells Fargo
Wells Fargo just paid the largest penalty to the CFPB in history and it’s all because 5,300 employees setup close to half a billion phony credit card accounts and another 1.5 million banking accounts and services. You can download a copy of the complaint here and it is serious stuff – Wells Fargo Law-Suit Read […]