Bank Fraud - 956 Words

Bank fraud is a crime that has been around as long as banks themselves. Anytime there is a large amount of money floating around, there are going to be people trying to figure out ways to get to it. In the United States, and most other developed countries, bank fraud is a serious problem that causes billions of dollars in damages every year, and is considered a federal offense. In China bank fraud is even punishable by death. Bank fraud is defined as attempting to wrongfully take money or property from a Federally insured financial institution. That doesn’t mean the banks are the only victims though. Millions of people every year fall victim to monetary damages that are caused by bank fraud. There are two main categories when it comes†¦show more content†¦Ã¢â‚¬ ¢ Credit Card Fraud: Credit card fraud is a very common crime. Credit cards can be stolen or created with a fake identity. Thousands of dollars can be fraudulently spent before the bank or the victim catches on. †¢ Fraudulent Accounting: Documents can be forged to inflate the perceived value of a company. This is used to attract large investments from the banks, when in reality the company may be worthless and never intends on giving the bank any return on their investment. †¢ Stealing Identities: Identity theft doesn’t only happen due to banking insiders. Personal information may be stolen via fake documents, phishing for information on the internet, through computer systems, or through various other avenues. The information is then used to take out loans or apply for credit cards using the victims personal informa †¢ Money Laundering: Money laundering simply refers to hiding the so urce where a sum of money originates. There are many ways for someone to launder money through a bank. Purchasing and selling securities, using the funds as collateral on the loans, and even writing off the money as business expenses are all common forms of money laundering. Protecting Yourself From Bank Fraud †¢ While the term â€Å"bank fraud† refers to criminals stealing money from financial institutions, that doesn’t mean their aren’t individual victims as well. For most people, the biggest threat is having their identity stolen. Once a thief gets aShow MoreRelatedBank Frauds in India are Substantial2419 Words   |  10 PagesThe number of bank frauds in India is substantial. It is increasing with the passage of time. All the major operational areas in banking. There are different area in Bank Deposits, loan, inter branch, accounting, transaction etc. Bank fraud is a big business in todays world. Banks these days are being duped of crores of Rupees, thus destabilizing investor’s confidence. The year 2005 witnessed the wiping of Rs. 1134.4 crores from the banking industry in India due to bank frauds, which was aboutRead MoreIncreasing Bank Frauds and Cyber Crimes2367 Words   |  10 Pageshighlight the increasing bank frauds committed through the Internet as the emerging white-collar crimes. The project first endeavours to explain the meaning of white-collar crimes, cyber crimes and corporate crimes and how they are interlinked with each other. Then there is a brief discussion about Internet crimes in the USA. This is followed by the example of the Mphasis-Citibank scam. The project concludes offering a few suggestions to control the rapid increase of bank frauds as cyber crimes. Read MoreThe Role of Internal Audit in Prevention of Fraud in Nigeria Banks . a Case Study of Equitorial Bank Lagos.9955 Words   |  40 PagesStudy CHAPTER TWO: LITERATURE REVIEW 1. Introduction 2. Types of Bank Frauds 3. Causes of Fraud 4. Effects of Fraud on Banks 5. Internal Audit function 6. 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