Fraud in Banks

1. 1
BBL New Joiners Training
Fraud & Forgery in Banks
Presented by
Retail Risks

2. 2
Basic Elements andBasic Elements and
Thumb Rule of BankingThumb Rule of Banking
Accurate KYC of Customers
Strictly Avoiding Account Introduction without Knowing Customer
Ensuring Call Back Confirmation from Customer When Necessary
Ensuring Proper Cross Checking
Ensuring Processes and Guidelines Never violated
Reconciliation, Reconciliation and Reconciliation
Always Vigilant
Never Share ID-Password

3. 3
Experience SharingExperience Sharing
ATM Skimming – A Recent Fraud Pattern
Facing law enforcement
agencies
Online/IB fraud

4. 4
Cheque Fraud

5. 5
Cheque Fraud
After Bangladesh Bank implemented Automated
Clearing House, the Number of Cheque fraud
incidents have drastically increased.
According to a news report; Bangladeshi Banking
Industry already experienced Cheque fraud of
around BDT 200 Crore.
In BRAC Bank, we also faced Cheque related
frauds and in the process had to bear losses on
many occasions.

6. 6
Cheque Fraud
Under the current Cheque clearing process, the presenting bank is responsible
for any fraud Cheque clearing.
If Cheque fraud attempts are not identified, Bank encounters direct financial loss
and often the amount may be immense.
This is one of the Cheques
that has been altered and
submitted to our branch
for depositing.
Cheque Fraud

7. 7
We have received such
notification from one of our
branches where a
BBL PO has been modified
and placed in a commercial
bank for clearing.
Cheque Fraud
Fake PO
Cheque Fraud

8. 8
Without any exception, our branches also often receive altered
Cheque. Though we have a central Cheque clearing unit to process
clearing Cheque, altered Cheque even with large amount goes for
clearing unnoticed by the branches.
“A preliminary checking of Cheque should be done sincerely at
branch level.”
Point of Checking
 Wrong beneficiary name,
 Overwriting was not authenticated properly,
 Cheque number altered,
 Presence of features of a Cheque, etc.
 Last awareness circulated regarding Cheque fraud
Cheque FraudCheque Fraud

9. 9
- BBL has already encountered many Cheque fraud cases.
- During investigation, most of the suspected accounts were found
opened using fake address and introduced without knowing.
Cheque FraudCheque Fraud
Faulty KYC may result Fraud

10. 10
Prevention
Point of Focus:
• Customer KYC should be done meticulously. Exact introducer, too.
• In case of depositing large amount through clearing purpose should be asked.
• Cheques in Drop Box should be examined with extra care.
• Cheques from Security company/Brokerage house also should be examined
carefully.
• Vigilant while receiving other banks PO/DD.
• Suspicious instrument should be checked under UV lamp (if available)
Cheque FraudCheque Fraud

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Nevertheless, bank’s prescribed processes has to be
followed meticulously to prevent Cheque fraud:
- Call back must be done whenever required as per process
or at any suspension.
- Very Cautiousness while performing Cheque requisition
and delivery.
Cheque FraudCheque Fraud

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Vital tool for
Postmortem of Any Fraud Incident
Is CCTV recording

13. 13
KYC : Know Your Colleague
- - Ensuring recording is always active, never know when and where in branch incident
happens.
- - CCTV cameras should be placed at important points with right angle.
Click to play/stop Click to play/stop

14. 14
Pls. Do Not Leave Desk
>> Without Locking Drawer
The desk drawers in cash area & service area
at branch are provided to secure the cash in
counter and seals of BSSOs. On several
occasions it is been observed that during
operation CCSOs, BSSOs left their desk
without locking the drawers. As a result
counter money gets exposed to the risk of
misplacing.

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The End