Lack of Simple Fraud Preventions Leads to Harsh Consequences

Occupational fraud within financial institutions takes many forms:

• Cash thefts from the vault of a small branch location totaling $40,000 are concealed through manipulated “surprise” cash count procedures.
• Cash thefts totaling more than $18,000 from multiple teller drawers of a branch location are concealed through the alteration of records.
• A series of fictitious special program loans are created concealing losses in excess of $750,000.
• A CEO circumvents system controls and steals over $650,000, affecting not only assets, but 89 customer accounts over a period of 6 years.
• A financial institution participates in an indirect RV (recreational vehicle) dealer loan program and suffers a fraud loss of $3.7 million over four years due to internal control overrides.

These firsthand accounts are but a few of the actual fraud cases detected in Midwestern financial institutions in just the last year.

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