Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. In many instances, bank fraud is a criminal offence.
#Types of #bank #fraud
Deposit Account Frauds: Following types of frauds are normally committed-
(a) Value of cheque deposited is inflated by inserting numbers.
(b) Nature of cheque is altered by deleting words. For example, crossed cheques are made bearer cheques.
(c) Name of the payee in the cheque/draft is altered and money is withdrawn by the fraudster.
(d) A dormant account is fraudulently operated by forging signature.
(e) Collections of the Mini Deposit Account are not deposited with the bank and misappropriated by the agent
Frauds relating to loans and advances: Following types of frauds are generally committed-
(a) A large number of loans advanced under the priority sector lending schemes turn NPAs because either the loans are taken by ineligible persons or used for some social or consumption purpose rather than utilizing it for agricultural operations.
(b) Proper appraisal of the project for which loan is advanced is not done by the staff for a consideration.
(c) Collaterals lodged with the bank are inadequate or valueless.
(d) Value of Hypothecated /pledged stocks is inflated.
(e) Goods pledged with the bank are removed with the connivance of the bank staff
Frauds relating to purchase Bills Such frauds are committed normally in the following manner-
(a) Fraudster discounts the bogus or stolen railway receipts.