Fraud is any activity that relies on deception in order to achieve a gain. Fraud becomes a crime when it is a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment”.
It can also be described as an unlawful and intentional making/ misrepresentation of material facts with intent to deceive by causing actual or potential prejudice to another party.
Common Types of Bank Frauds in the industry:
- ATM Cards Fraud – Swapping, Cloning, Unsolicited helpers, stealing cards & PINs and Skimming, entrusting third parties with one’s card, uncollected cards and stealing the whole ATM.
- Deliberate cash shortages, either in transit or by tellers
- False / Incorrect postings or credits to customers’ accounts (Deposit Suppression).
- Fraudulent postings on Internal GLs and customer’s accounts
- Forged funds transfer instructions
- Fraudulent Loan Advances
- Fraudulent International remittances
- Hacking and Cyber attacks
- Identity Fraud/ Impersonation and Forgery
- Foreign Exchange Fraud
- Fraudulent Voucher and Account opening and accessibility.
- Cheque Fraud- counterfeit cheques, cheque kiting, paper hanging, stolen and altered cheques.
- Trading the float (Lending cash from vault for a commission or interest).
- Use of Key-loggers. These are usually physically planted hardware into the computer with intentions of accessing your personal data.
