Bank Fraud Essay

953 Words May 13th, 2012 4 Pages
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 to
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The scam revolves around people making uninsured deposits to the bank, only to have the bank, along with their money, eventually disappear.
• Forged Documents: A forged document claiming that a sum of money has been transferred to another account or something similar can be valuable to a con artist who doesn’t want the bank to notice any missing money.
• Wire Fraud: It’s common place for banks to wire large sums of money on a daily basis. An insider can fraudulently wire money to a personal account at an offshore bank. It may take a bank months or even longer to notice the missing funds.
Whenever people are put in a position to handle large amounts of money, and the opportunity for fraud presents itself, it is always a serious threat. Banks and financial institutions are constantly updating security to prevent insider fraud. The documented cases of fraud have been on the decline over the last couple of decades. While computer tracking and improved security certainly deter fraudulent practices, the threat still exists, and insider fraud still occurs on a regular basis.
Fraud Perpetrated By Outside Parties
Bank fraud is not limited to those working inside the institutions. Banks, and their customers, have been long time targets for con artists. Here are some of the more common ways that fraud can be accomplished by individuals without insider access to the banks.
• Check Fraud: There are a variety of ways to commit check fraud. The basic…

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