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Bank Fraud by Revathi Subramanian download in pdf, ePub, iPad

So again, business continues as normal for the fraudulent company, its fraudulent customers, and the unwitting bank. Enron and WorldCom and Ocala Funding. The fraud is discovered only when the bank's head office does the branch-wise reconciliation, which normally take six months, by which time the money is gone. The use of a stolen identity for other frauds such as gaining access to bank accounts, credit cards, loans and fraudulent social benefit or tax refund claims is not uncommon.

The same is true if the borrow uses a false identity in order to become approved for a loan, or forges information on a loan application. Since they are insiders, they know the coding and punching of a demand draft.

After stealing checksThe original forms on which these

Accounting fraud has also been used to conceal other theft taking place within a company. Bank fraud is distinguished from bank robbery by the fact that the perpetrator keeps the crime secret, in the hope that no one notices until he has gotten away. Bank Fraud Investigator Although many financial institutions employ their own brank fraud investigators, and local law enforcement is often involved in investigating such crimes, it is the U. To give the illusion of being a desired customer, the company regularly and repeatedly uses the bank to get payment from one or more of its customers. The draft is cashed at the payable branch.

Unsurprisingly, the perpetrators of such fraud have been known to take out loans and disappear with the cash. Some of these schemes are more complex, and affect more people or institutions, garnering harsher penalties than others do. Such fraudulent demand drafts are usually drawn payable at a distant city without debiting an account. Sometimes the names appear very official or very similar to those of legitimate banks. Impersonation of officials has more recently become a way of stealing personal information for use in theft of identity frauds.

The original forms on which these fakes were based are intended to collect information for income tax on income from deposits and investment. After stealing checks, they open a bank account using an assumed name, and deposit the checks.