Fraud in the banking system

[Pousinha]

Tips to avoid, as possible, banking system frauds:

1) don't share bank information (credit card number, login, passwords, etc.) via e-mail, when it appears you have received an e-mail from your bank. I don't know how in african countries bank work, but it's never a good thing to share these informations. Banks are not allowed to ask personal infos via e-mail, nor calls in order to ask them. If you receive an e-mail asking for a credit card number, login, passwords, even claiming it's the bank, it's in fact phishing
2) it's better to not open fake e-mails claiming it's your bank, but in fact it's phishing (a phishing e-mail may contain a virus that steals bank infos)
3) don't open you bank app account if you suspect a virus is running your device
4) secure your device with good antivirus/internet security tools (you don't need to pay, as good freeware tools exist, helping the default ones)
5) avoid public hot spot connection (wifi in the airports, internet cafés, etc.) to open bank accounts

 

[Kamon c4]

The new system of online banking I believe was to make things easier and faster in banking, it's just that it is not fully guaranteed to be safe from hackers. I know that hackers always find ways to penetrate from the the system.

Though it’s nou easy for scammers or hackers to penetrate the firewalls without having the correct information of a client, I still believe it’s the duty of banks to educate their users about the dangers involved in divulging personal information to anyone

 

[BrolySSJ]

It’s been known that scammers are able perpetrate banking securities and commit fraudulent acts. With the high involvement of technology in the new day banking systems, do you think it has contributed negatively than positively?

I think that overall it has been a negative impact on banking. With the technological advancements that have taken place this is the reason why much of it has moved to the online system and as such there is the potential for it to be hacked. Without these technological advancement that we are using for convenience and ease of transactions perhaps there will be less chance for theft and fraudulent activities and hacking. So as much as it has helped us, it has also left us vulnerable.

 

[Kehinde]

to obtain any of the moneys, funds, credits, assets, securities, or other property owned by or under the custody or control of, a financial institution.

 

[EMMANUEL]

Educate your customers to safeguard against fraud

On the customer level, banks need to be informing their customers on the types of common fraud to ensure that they are protected for all eventualities.

Authorized push payment scams are one of the fastest-growing types of fraud. According to the FT, £354 million pounds was stolen this way last year. It is where a company or individual is tricked into paying money into a criminal’s account. Emails come from a genuine email address but are then intercepted by a criminal, so it’s imperative that businesses have end-to-end email encryption, and the customer double-checks the account details with the supplier on the phone prior to making a payment.

At the same time, scammers can also exploit the company’s invoicing process, where criminals create a bogus invoice for a small amount and send it to a company’s accounting department. If the finance team does not identify this as fraudulent, it can result in the business losing a considerable amount of revenue over a long period of time.

Supplier fraud is also a widespread scam. This involves the fraudster taking on the appearance of a supplier that has changed their bank details. The fraudster will have collected information on the suppliers of the targeted company, in order to pose as an official supplier. This can be prevented by ensuring that the supplier is contacted to confirm the legitimacy of the communication. It’s important not to call or email the supplier using the details provided on the suspected fraudulent correspondence. Instead, they must check the original details of the supplier and speak to them on their official telephone number or email on file.

Banking malware is the least commonly cited type of fraud but has a greater financial risk attached to it. Malware is sent by email redirecting the recipients of the message to a fake banking interface, as a way of transferring funds to offshore accounts.

 

[Kamon c4]

Educate your customers to safeguard against fraud

On the customer level, banks need to be informing their customers on the types of common fraud to ensure that they are protected for all eventualities.

Authorized push payment scams are one of the fastest-growing types of fraud. According to the FT, £354 million pounds was stolen this way last year. It is where a company or individual is tricked into paying money into a criminal’s account. Emails come from a genuine email address but are then intercepted by a criminal, so it’s imperative that businesses have end-to-end email encryption, and the customer double-checks the account details with the supplier on the phone prior to making a payment.

At the same time, scammers can also exploit the company’s invoicing process, where criminals create a bogus invoice for a small amount and send it to a company’s accounting department. If the finance team does not identify this as fraudulent, it can result in the business losing a considerable amount of revenue over a long period of time.

Supplier fraud is also a widespread scam. This involves the fraudster taking on the appearance of a supplier that has changed their bank details. The fraudster will have collected information on the suppliers of the targeted company, in order to pose as an official supplier. This can be prevented by ensuring that the supplier is contacted to confirm the legitimacy of the communication. It’s important not to call or email the supplier using the details provided on the suspected fraudulent correspondence. Instead, they must check the original details of the supplier and speak to them on their official telephone number or email on file.

Banking malware is the least commonly cited type of fraud but has a greater financial risk attached to it. Malware is sent by email redirecting the recipients of the message to a fake banking interface, as a way of transferring funds to offshore accounts.

This is by far the most comprehensive and preferable solution to curb banking fraud. It’s spot on. However, it’s required of banks to educate their customers and let them the dangers of releasing their information to others. Also, it’s required of banks to create a good security system that could help track stolen funds and scammers

 

[Imkevin21]

The banking industry has a multi-billion dollar fraud problem the costs will only rise fraudsters and becoming aggressive and resourceful that quickly become a multi-billion dollar sometimes legitimate manager or customer service who performs the operation.

 

[Kamon c4]

The banking industry has a multi-billion dollar fraud problem the costs will only rise fraudsters and becoming aggressive and resourceful that quickly become a multi-billion dollar sometimes legitimate manager or customer service who performs the operation.

Fraudlent acts aren’t perpetrated only by bank workers. Bank customers have blame in this case. Some many people have been defrauded due to negligence and ignorance. In Nigeria, any biker could call your phone number and tell you ‘your bank account has an issue and it’s required you divulge your information’. In this case the customers are ought to call their customer providers but negligence and ignorance about this will cost them a lot

 

[Alexandoy]

The technology in the banking system is to enable easy banking, you don't necessarily need to go to a bank to save or receive money. In term of fraud no one can have assess to the money in your account without your registered SIM to the account, so keep your phone save from Fraudsters

You are right that the purpose of online banking is for the convenience of their customers. But due to negligence and carelessness some customers can lose money from fraudulent withdrawals by hackers who got hold of their password. With the stealing of the bank's money like the Bangladesh Bank that lost millions of dollars, I believe that it is an inside job which means there are bank personnel who helped the hackers with the information that they need to withdraw the big amount.

 

[Kiran Jutti]

You are right that the purpose of online banking is for the convenience of their customers. But due to negligence and carelessness some customers can lose money from fraudulent withdrawals by hackers who got hold of their password. With the stealing of the bank's money like the Bangladesh Bank that lost millions of dollars, I believe that it is an inside job which means there are bank personnel who helped the hackers with the information that they need to withdraw the big amount.

Are you saying truth

 

[Lekan]

Well it may enable the bank to loss and affect the bank worker ,but now that technology has help us in securing our system ,if the thing happens to the bank they are the one that cause that .maybe they didn't set it well that is why.
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Well it may enable the bank to loss and affect the bank worker ,but now that technology has help us in securing our system ,if the thing happens to the bank they are the one that cause that .maybe they didn't set it well that is why.

 

[idhans]

It’s been known that scammers are able perpetrate banking securities and commit fraudulent acts. With the high involvement of technology in the new day banking systems, do you think it has contributed negatively than positively?

Banks really have to improve on their security systems. In Nigeria I learnt that People's Bank verification numbers where hacked from the database which means so many people's bank account can be tempered with in the future.

 

[Kane]

I cannot talk for other people and the situation in other countries, however, I am quite satisfied with the banking sector in the country. There has been breach in the security systems of the banks and a large sum of money was scammed, but the banks managed to sort out the problems pretty soon.

 

[Kamon c4]

You are right that the purpose of online banking is for the convenience of their customers. But due to negligence and carelessness some customers can lose money from fraudulent withdrawals by hackers who got hold of their password. With the stealing of the bank's money like the Bangladesh Bank that lost millions of dollars, I believe that it is an inside job which means there are bank personnel who helped the hackers with the information that they need to withdraw the big amount.

This is so accurate and spot on! This problem is a common problem in the banking system around the world. Even in some cases, it was reported by apprehended fraudsters that no inside person was involved. All they needed was the customers information to carry out their wicked act. Technology involvement in the banking was made to Make business transactions easier and faster but it has been misused

 

[Tariq Shehzad]

Banking system should be highly secured regarding IT department and Security. No matter how fraud go around banking system based on how the individual security level its. If you input a strong security guard in your bank account, your bank account won't be penetrated.

 

[zyralorenzo01]

both are taking in step. negative because of breaches. positive because you can improve the system. That is the wonder of it.You can learn from mistakes

 

[Chizfab]

It is getting worse with the growing technology. There are scam software littered over the internet which these scammers use to steal from people's bank accounts with the help of those working in the bank. It's getting too much that one has to be very careful when using POS.

 

[Adetayo100]

Mostly they are categorized into: clearing fraud, advance fee fraud, money transfer fraud, counterfeit securities, Cheque kitting, theft and embezzlement, robberies, forgeries, defalcation and letter of credit fraud
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Mostly they are categorized into: clearing fraud, advance fee fraud, money transfer fraud, counterfeit securities, Cheque kitting, theft and embezzlement, robberies, forgeries, defalcation and letter of credit fraud

 

[Hasan Raza]

Yes it's true that there are large number of scams in banking sector. It's been all about what those scammers can do while working with those from the inside. Such is a terrible situation that I don't even want to see it happening again. I don't believe that they can carry out bank fraud without having that link from the inside and such act is terrible and frustrating. If you want to know about scams of bank then i suggest you to wath an Indian season name "The Scam 1992" by Harshad Mehta.

 

[Ibrahim1]

I believe in technology in banking system and also they also the one who is operating the scamming because they also the one in charge of accounts and they can run everybody's account, it's really going to affect the bank to run down because when it started everybody just need to run out of that banking system.