TABLE OF CONTENT

1. Fraud definition 2. Why commit fraud 3. The effect of bank fraud 4. Fraud management 5. Detecting fraud 6. Identity theft management 7. Protecting one self 8. Destroy all unwanted documents 9. Most paper works to be destroyed include 10. Major type of fraud 11. Fraudulent loans 12. Mortgage fraud 13. Other types of loan fraud. 14. Wire fraud 15. Fraud indicators 16. Behavioral indicators 17. Physical indicators 18. Internet fraud 19. Cheque fraud 20. Counterfeit cheques 21. Stolen cheques 22. Altered or forged cheques 23. Closed accounts-

24. New accounts 25. Overrpaid checques

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26. Measures to adopt to ensure that your cheques are not or cannot be forged after they have been prepared and signed. 27. Ecobank fraud case 28. References

Fraud Definition
Fraud is an aspect of corruption and it occurs in organizations where governance structures are weak. The Association of Certified Examiners in the USA defines fraud as the use of ones occupation for personal enrichment through deliberate misuse or misapplication of employing organizations resources and assets. The Collins English Dictionary (1999) also defines fraud as a criminal offence in which a person acts in deceitful way .in this respect fraud can be classified either internal or external. However in the perspective of the financial industry and specifically the Banking sector, fraud remains a huge issue. Banking fraud therefore is define as the use of deliberate misrepresentation in order to fraudulently obtain money, assets or other property owned or held by a financial institution. Moreover in criminal law, bank fraud is an intentional deception made for personal gain or to damage the financial institution. Bank fraud is also widely known as the white-collar crime: which requires some sort of technical expertise 4 Worlali K Ameevor worlali802@gmail.com 00233266552155

Why commit fraud

The perpetrators do not necessarily carry same identities rather they carry similar characteristics. Many individual are driven to the cause of fraud just by mere interest in what they do not have perhaps they want to posses. Besides individual intents to fraudulently acquire things that they may need, things really do not have and per the influence of the environment they find themselves there is also a great desire for a group of persons or otherwise clans that have group desires to get gains for fame, ownership of property, to be financially sound etc.

The effect of bank fraud

Beyond financial (monetary) losses fraud has other negative consequences that impact an institution reputation, customer loyalty, and the confidence of the shareholder. Moreover in the greater impact, the fraud cost is passed on to the customer. The individual who fall victim to fraud can experience mental, psychological, financial, social and physical damage. The impact of fraud can also be very damaging to cooperate victims where small/medium scale businesses are most times unable to recover from the financial or reputational damage caused. However most large companies literally feel the impact through the increase cost of doing business. 5 Worlali K Ameevor
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Fraud management
Today while , electronic tracking and improved security has deter fraud practices the threat still exist and bank fraud still occurs on regular basis. Fraud as have been mentioned earlier on is a crime, and is becoming difficult to pin down, however, with the right management controls, practices and policy frame work, it can be mitigated. While financial institutions are increasingly spending more resources on the management of fraud and it allied, the traditional approach of using transaction monitoring systems can only work well for detecting individual point of sales fraud in real time. The financial institutions need an integrated framework together with most comprehensive plan new and modern fraud detection and prevention. This management approach needs to protect fraud at the point and time of transaction, accurately detect incidents in transaction, span all the ways customers interact with the institution and provide structured oversight for the fraud management program me. There are some key elements that can help institutions to successfully prevent fraud. The institutions must

detecting the risk of fraud

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rstand their responsibility for preventing fraud and detecting the risk of fraud

-annually or biannually

- annually or biannually -annually or biannually , including credit checks, and checks for conflict of interest

Detecting fraud
Detecting fraud generally relies on a number of actions; from providing safe whistle blowing, awareness of how staff can report suspicions to specific process checkpoints etc. Some elements as tabulated below with possible affirmative answers ordered from highest to lowest, entities who want to detect fraud must 1. Closely monitor staff expenses 2. Have a culture where staff will be willing to raise any concerns that they may have regarding fraud or corruption and know that their concerns will be taken seriously and that they would not suffer any retaliation 3. Closely monitor staff credit deductions/levels 4. Encourage staff to come forward if they see or suspects fraud or corruption 5. When fraud or corruption risk are raised, take proactive steps to reduce the risk
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6. Have a whistleblower hotline 7. Have a protected disclosure policy

Identity theft management

Identity theft occurs when fraudsters use your personal information without your knowledge or consent to take out bank accounts, credit cards, loans, state benefits, and documents such as passports and drivers licenses in your name. Your identity and personal details are very important for variety of reasons. If these are compromised by criminals, you may only discover financial crime when you receive letters seeking repayment of debt you havent incurred, or you find an unexplained credit in your bank account. It can have very serious consequences on your personal life and finances. For example, you may have difficulty getting loans, credit cards, or a mortgage until the problem is sorted out.

Protecting one self

In protecting yourself against this fraud you are advised to keep your valuable documents secure. It is very crucial to secure documents such as passports, drivers licenses and other IDs and always ensure they are in your possession. Whether at work or at home. Remember, dont keep your cheque-books and bank cards together store them separately.

Destroy all unwanted documents

Dont help criminals. Always destroy all important personal and financial papers and documents when you dont need them any longer. Preferably use cross-cutting shredder for addition security. If you do not do this, criminals could establish your
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name, address and other details by going through your rubbish and can use the information to apply for credit, goods or services in your name .

Most paper works to be destroyed include

personal details

Major type of Fraud

Fraud can be classified as internal or external. Internal fraud occurs when employees identify an opportunity to commit the act of fraud. An external fraud is committed when outsider such as customers, suppliers, and service providers defrauds institutions. I some instances, they would be working with internal staff. However in the banking financial institution there are multiple disciplines of fraud. They are an

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Fraudulent loans
Fraudulent loans take many different forms. The victims may be individuals or group of people or institutions, and these case financial institutions. Fraudulent loans schemes generally prey on vulnerable consumers. The situation was people, groups of people and institutions turn to be in need for money for emergency purposes. Here we are going to look at critical but common forms of Loan frauds and how to avoid becoming a victim or accidentally committing fraud yourself.

Mortgage fraud
In the west, mortgage fraud if not the commonest loan frauds, then it is one of the most common form of loan fraud and its so costly. The victims can be banks or individuals. And sometimes individuals can perpetrate fraud without even knowing.Creative Financing is a term that has been in the mortgage industry for a long time now. Unfortunately many a time the term forces consumers to commit fraud without even realizing it. Here are some few examples that a mortgage applicant can/may do which would constitute mortgage fraud. May be he/she raised your house value a little bit to help you get a higher selling price. If that is the case, its mortgage fraud ed income mortgage? May be you exaggerated your income a little bit to help you get a lower interest rate. That definitely is not creative financing. That is mortgage fraud. According to the FBI, mortgage fraud is defined as any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan. If you feel that you may be asked to break the laws on
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your mortgage application, at the very least, consult your council because ignorance of the law is no excuse. This fraud is also highly perpetrated by insiders.

Other types of Loan Fraud.

Other types of loan fraud may include applying for loan with a fake identity, forging loan documentation, or even posing as a financial institution I order to collect down payment on an alleged loan and disappearing after receiving the cash.

Wire fraud
Wire fraud is defined as attempting to defraud using electronic means, such as a computer or telephone. What must be proved is that the person knowingly and unlawfully devised or intended to advice a scheme to defraud. Since the advent of the internet, there are literally thousands of crimes that fall under the definitions of wired fraud. Here we will be looking at some of the more common forms of wired fraud, why they occur and how you can protect yourself.

Fraud indicators
There are various indicators as to who might be involved in fraud and these may be manifested through the change in behavior, speeches or physical appearance of an employee.

Behavioral indicators
An employee who always seems to stay at work a little later than everyone else or who wants to leave after the supervisor has gone. A formally outgoing employee who has become withdrawn. An employee showing signs of drugs or alcohol abuse. 11 Worlali K Ameevor
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An employee who refuses to take any vacation or other time off.

Physical indicators
Signs of altered timesheet that a supervisor is requested to approve. Signs of correction or overrides made to stock accounts sheet or goods received voucher. Indicators of photocopies or otherwise suspicious looking supplier invoices submitted for approval. Signs of non-business expenditures incurred while on a business trip that are being charged to the organization.

Internet fraud
The internet fraud offers a global marketplace for consumers and business. But the crooks also recognize the potentials of cyber space. The same scams that have been conducted by email and phones can now be found on the World Wide Web and in emails and new cyber crimes are emerging. It is sometimes hard to tell the difference between reputable online seller and criminals who use the internet to rob people. You can protect yourself by learning how to recognize the danger signs of fraud. If you are a victim or attempted victim of internet fraud, it is important to report the scam quicly to the law enforcement agencies so they can shut down the fraudulent operations. Examples of internet fraud include but not limited to the following as there are emerging ones each and every day: 12 Worlali K Ameevor worlali802@gmail.com
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1. Advance free loans 2. Credit card offers 3. Business opportunities 4. Charity scam 5. Fake cheque scam 6. General merchandise 7. Government grant 8. Nigerian Money offer(419) 9. Investment scam 10. Travel fund 11. Pyramid and multilevel marketing 12. Phishing 13. Information/adult service 14. Identity theft 15. Scholarship scam 16. Online auction 17. Work from home scam 18. Job scam

Cheque fraud
Checque fraud is one of the oldest types of financial crime. Even in our computer and internet technology era, many consumers still prefer to pay by cheque or bankers drafts. The cause of this is the people do not trust the computer technology and have misconceptions about online banking. This is to some extent understandable because of the fact that most of these humans are computer illiterates and what is unknown to the human mind causes fear or rejection. This fear however is totally obsolete because statistics has shown currently that online banking is now safer than cheques. 13 Worlali K Ameevor worlali802@gmail.com
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To protect yourself from cheque fraud I will be giving you some guidelines and necessary precautions you should take before receiving or sending a cheque. It is also strongly recommended that you responsibly inspect and analyze the cheques The three main types of cheque fraud are: Counterfeit cheques-these cheques are not written or authorized by legitimate account holders. The existence of counterfeit cheques is supported by new technology. The thieves now use printers, copiers, and softwares to make clone cheques with high resemblance to the original. Many times these are hard to recognize as false even by experts.

Stolen cheques-cheques not signed by account owner, rather stolen, usually

out of the glove box of cars or homes. The signature is then forged and cheque used as pleased. Interestingly other documents not well protected and have signatures are used to clone the signature.

Altered or Forged Cheques- this check is properly issued by the account

holder but has been intercepted and the beneficiary or the amount on the cheque being altered or new information added. To do so, sharp instruments and chemicals are used.

Closed accounts- Bank account which are not used anymore or are closed,
but cheques still exist for these accounts. if these cheques are not destroyed, you can be a potential victim

New accounts- an identity is stolen or made up with false documents. If a

fraudster personal document and some potential information, he can request a bank account in your name. Bankers unknowingly accept these request and open new accounts, giving the scammer the opportunity to steal money from individuals or businesses in your name.
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Overpaid checques- a false cheque is issues by your business partner with

a larger sum than required. The thief will then ask if he can get the change, making up different excuses why he transferred the overpaid sum. The cheque is false and will be declined by the bank and you will end up losing the amount you gave out in exchange.

Measures to adopt to ensure that your cheques are not or cannot be forged after they have been prepared and signed.

-sign cheques en cheques are taken from cars

Measures to take when receiving a cheque other Ids confirmation as they are relatively easier to fake. Even then be cautious. These documents can also be forged.

y be some sort of personal information, compare the number in your phone book and call the person at home
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of accepting cheques not signed in front of you or single cheques not being torn out of the checkbook. Thieves often steal just one or two cheques to gain time before the owner suspects the missing leafs.

are of Checque gifts People who are cashing cheques end up losing funds when the bank realizes the cheques are false. Thats so because people are held responsible for anything they deposit into their accounts. Ecobank fraud case
THE FINANCIAL Division High Court yesterday sentenced an Ecobank Cashier and her husband to 25 years' imprisonment each for stealing various sums of money from accounts of the bank customers. The couple was found guilty of stealing over GH700,000 from the accounts of Church of Pentecost and Teacher's Fund. The cashier, Linda Edzidor, was charged with 94 counts of stealing while her husband Joshua Edzidor faced four counts of abetment of crime and dishonestly receiving. According to the prosecution, the cashier, who had worked at Ecobank Ring Road branch for the past four years, between the months of May and October 2010, withdrew GH 655,526, GH31,120 and GH 655,526 from the accounts of Church of Pentecost headquarters, La District Church of Pentecost and Teacher's Fund Financial Service respectively, and invested them into businesses. They had allegedly used the money to buy two 44 vehicles, four taxis and acquired a vast land at Pokuase for a Real Estate company. 16 Worlali K Ameevor worlali802@gmail.com 00233266552155

In addition, Joshua formed Strong Foundation Company and opened an account at Ecobank for it. Some of the stolen money was deposited in the Ecobank account to run the said company. The court presided over by Justice Bright Mensah observed that the prosecution, led by a Principal State Attorney, Evelyn Keelson, was able to prove the guilt of the convicts without reasonable doubt. The judge observed from the evidence that it was Joshua who encouraged his wife to steal the money, as Linda sent him the stolen money every two weeks. Justice Mensah found them guilty on all the counts and sentenced each to 25 years' imprisonment in hard labour, but the sentences are to run concurrently. The judge also ordered that the money and the property acquired by the convicts should be confiscated and given to the bank. Before conviction, their lawyer, J. K. Yeboah, prayed the court to temper justice with mercy because the convicts were young and had two children. Facts in court disclosed that in October last year, some customers, including the Pentecost Church, complained of strange withdrawals from their accounts. The bank therefore commenced investigations into the matter and discovered that Linda was the one who withdrew the money without any authorization from the bank. The bank then invited her for questioning but she did not honour the invitation as she continued to feign sickness and gave flimsy excuses. This made the bank contact her husband, who gave an undertaking that he was ready to pay the amount involved. However, the bank handed the case to the police for further investigation, leading to their arrest and subsequent sentencing. By Mary Anane 17 Worlali K Ameevor worlali802@gmail.com 00233266552155

REFERENCES
http://www.modernghana.com/news/358665/1/ecobank-cashier-jailed-for-fraud.html http://www.ecobank.com/sc_it.aspx http://www.fraud.org./ http://www.fraud.org/internet/intinfo.htm Best Practice Series: Fraud and Prevention Handbook

Conclusion
Risks are inherent in the banking business, but fra ud risk is something that no bank would like to dea l with. But the fact is that frauds are on the rise and org anizations need to put their business affairs in or der by having effective control mechanisms in place to cur b the menace. Internal controls can weaken over tim e due to technological advances or human intervention (management override or collusion) or because of t he rise in new fraud schemes. Implementing anti-fraud controls is not a fool-proof measure against frauds . Nonetheless, having anti-fraud measures in an organ izations control environment can go a long way in deterring individuals from perpetrating fraud becau se the message going down the line is that the seni or management is cognizant of this crime and is commit ted to preventing it within the organization