Bank Fraud Investigations
Bank fraud threatens the business health, reputation and even the very existence of community banks. Fraud perpetrated by bank customers can impact both the bank and the public which can lead to litigation involving the bank.
According to FBI.gov:
Financial institution fraud (FIF) is the class of criminal schemes targeting traditional retail banks, credit unions, and other federally-insured financial institutions. Many FIF schemes involve the compromise of customers’ accounts or personal identifying information (PII); when identities are stolen, both the financial institution and customers are considered victims.
FIF can be categorized as either external—when perpetrators have no affiliation with the victim institution—or internal—when bank employees use their access to accounts and systems and knowledge of policies to commit fraud. Commonly investigated external FIF schemes include stolen or counterfeit checks, account holder impersonation, access device fraud (misuse/unauthorized use of debit cards), credit card scams, and email hacking leading to loss. Unfortunately, as technology creates increased convenience and accessibility for customers, it also creates opportunity for criminal actors.
Embezzlement and misapplication of funds are two of the most common internal FIF schemes encountered in FBI investigations. And when the fraud is egregious enough, it can lead to the complete failure of the federally-insured financial institution.
Joe Hopkins is Certified in Financial Forensics by the AICPA and has worked with financial institutions in defending banks in litigation in Ponzi schemes perpetrated by a bank's customer. David Emerson spent his career in establishing fraud prevention systems in banking, investigating actual bank fraud (both internal and external) and participated in the resolution of fraud issues.
Click to read more concerning recent bank fraud cases prosecuted by the Department of Justine: