This website uses cookies to ensure you have the best experience. Learn more

Fraudulent Banking: Where’s My Money? Essay

1865 words - 7 pages

Every day we make purchases, use our credit cards, write checks, and shop online. Money becomes bigger each day and so does greed. As technology continues to improve and change over the years, so has banking fraud. Despite banks and businesses finding new ways to protect their customers from fraud, it still occurs all around the world. The main types of fraud can be classified as check fraud, credit and debit card fraud, identity theft, and corporate fraud. There is a lot that differentiates these types of fraud, the criminal’s actions, the repercussions of their actions, and the indicators of possible fraud. Thankfully, businesses and banks are becoming more proactive by informing customers about fraud and their characteristics, which are usually explained on their website.

Check Fraud
The first type of banking fraud is check fraud. This is the action of writing checks with insufficient funds or using checks that are counterfeit. The guilty party is usually the person who signs the check, but sometimes in can be a third party or someone who merely passes the check along to someone else (“Bad Check Laws,” sec. 1). Victims can be either businesses or individuals, but the same goes for being a criminal; either party can be considered guilty in a situation. Technology today enhances the chances of check fraud or any fraud, actually.
Some types of check fraud would be forgery, counterfeiting and alteration, paperhanging, and check kiting (“Check Fraud Prevention,” sec. 2). A website called www.wisegeek.org provides a description of each type. Forgery is when someone signs a check and uses it without that person’s permission and most times without them knowing it. Counterfeiting is more complicated than forgery, but is still the same concept. It is the process of taking a copy of a used check and making a copy of it to reproduce it using a printer. This can be quite dangerous if the criminal is successful with the copy creation, because then they have a blank copy that they can continue to print off and use illegally (“WiseGeek-Check Fraud,” par. 1-3).
Check alteration is similar to forgery, but different from counterfeiting. Alteration is literally changing who the check is paid to and sometimes by how much. The guilty party can use simple household cleaners and chemicals to change this information on a check. The final type of check fraud is check kiting, which is probably the most complicated. In this instance, an individual opens two banking accounts. They will write a check from one account. The bank will process the check and discover there is not enough funds in the account. Before the account is overdrawn, the individual writes another check to cover the amount but puts it into the other account. This allows the individual to create illegal, fake balances in these accounts (“WiseGeek-Check Fraud,” par. 4-5).
If caught, there are civil penalties that are mandated by each state that can be ensued. According to Indiana Law, committing...

Find Another Essay On Fraudulent Banking: Where’s My Money?

Leak in the Pipeline Essay

1080 words - 4 pages games?” “No. It has nothing to do with you. I was just thinking of something funny.” I answer. “Laugh at this, Robert. You’ve got $80,000 in cash in your angel’s belt. Now that’s funny,” says the Lieutenant. “Get funny man dressed and out of here,” the Lieutenant smiles. “Hey, how do I get home? You’ve got all my money.” “Laugh your way home, clown.” “Come on, give me cab fare.” “Now Bob, that’s really funny.” “Where’s a receipt

Crimes Against Business Essay

755 words - 4 pages organized crime operation.” The Acting Attorney, General Hoffman said in this article, “This was a huge bank fraud scheme in which the defendants attempted to use the casinos to launder the stolen funds. This case highlights the ever-present threat of identity theft and the need for financial institutions, banking clients and law enforcement to remain extremely vigilant.” In this case, the criminals used techniques such as money laundering to

bank frauds in India

2407 words - 10 pages destabilizing investor’s confidence. The year 2005 witnessed the wiping of Rs. 1134.4 crores from the banking industry in India due to bank frauds, which was about 2.5 times the amount lost in the previous year. Banks are dealing with public‟s money and hence it is imperative that employees should exercise due care and diligence in handling the transactions in banks. Recent rise in bank frauds calls for tightening of security mechanism. A strong

Prime Bank Internship Report

7820 words - 31 pages Internship Report on "Electronic Banking and Customer Satisfaction".Dear Sir,This is my internship report on "Electronic Banking and Customer Satisfaction at Prime Bank Limited (PBL). I am submitting this report as the part of fulfilling my BBA degree. In case of preparing this report, I tried my best to make the report informative and to follow your instructions as well as the instructions given by my organization supervisor. The full report is based

Technology Impact/Phishing/Banking - TEC 401 - Human Factors in Technology

1185 words - 5 pages Technology Impact"Important email for Jill Smith: Chase Bank has noticed suspicious activity on your account. Please login using the link below to confirm this activity." "EBay user: Your request to have your email address changed is completed. If you did not request this change, please login using the link below to report fraudulent account activity." "Hi, my name is Jill Smith from Chase Bank. We have noticed some strange activity on your

Green Banking Policy of Babgladesh Bank

1862 words - 8 pages experimental green products: utilizing online banking instead of branch banking, paying bills online in place of mailing them, act of buying green mortgage, starting up of CDs, green credit cards and money market accounts at online banks instead of large multi-branch banks or searching the local bank in your area that is taking the considerable steps to support local green initiatives. Green Banking is a multi-stakeholders' try hard where banks have to

Federal Reserve System in Preventing a Contagious Loss of Confidence

586 words - 3 pages also ensures soundness in the banking system through supervising the financial players in the country. Without monitoring, banks would have a chance of engaging in fraudulent activities and economically unsound activities. However, the FRS controls the banking activities in the country through setting various regulations such as reserve ratio requirements. The Federal Reserve System also offers advice on financial matters to the government to

Legal Assessment

1331 words - 6 pages believe that this science could get out of hand and become uncontrolled being called ‘mad science’. Also the fear for loss of privacy and increased possibilities for genetic discrimination. Law reform would also be effectively used in fraudulent behaviours regarding internet banking and the potential threat of loss of money. By making stricter fraud laws this would decrease the chances of fraud happening with a main target on business owners the public interest is very high. Works Cited My Work

Sun National Bank's Fraud Cases

1831 words - 8 pages viable and performance oriented especially in the financial sector to help in ensuring holistic mitigation of such cases. This paper focuses on the recent fraud case that involved Sun National Bank that operates internationally. The bank lost huge amount of money in an act that was considered done by over fifteen individuals. The state of fraudulent activities in the banking sector Certainly, the most targeted institutions where fraudulent

Fraud Banking

1148 words - 5 pages can all be daunting to overcome or avoid, but it’s possible to minimize the risk and opportunity. Using some of the advice and being aware of the stated indicators will help any individual or business become proactive in dealing with fraudulent banking. Hopefully the future of banking can one day change banking entirely in hopes of wiping out fraud and the insecurities that come with it. Works Cited "Avoiding Identity Theft." Consumer.gov

Consumer Reactions To Online Banking

2928 words - 12 pages online. It is estimated that by the year 2003, 15,845 banks will offer online services mostly via the web, up from 1,150 in 1998. Nearly 6.6 million US households bank online in 1998, a number expected to increase to more than 32 million by 2003. It is easy to see that online banking will revolutionize the way people will handle there banking activities in the future.LITERATURE REVIEW Show me the money ? that?s the first response of many potential

Similar Essays

Wire And Online Banking Essay

585 words - 3 pages cases nearly explode and banks are looking for ways to protect their channel in online banking. Most schemes of online banking fraud which involves two steps. Initially the criminal obtains the customer's account access data, which involves logon name and password. The next step the criminal uses this information for money transfer to other accounts and withdrawals the funds. All such fraud cases are approached and many prevention measures are

Ethics In Business Essay

3162 words - 13 pages . Many businesses got bad reputation just by being in business. For some people the idea of business is to make money and that is the only purpose. In other words, it could be called capitalism. Do not take me wrong, my attention is not to say that making money is wrong in itself. However, the manner in which some businesses behave themselves brings up the uncertainty of ethical behavior. Every business should carry good business ethics and

The Internet Revolution Essay

1587 words - 6 pages tickets online. Its much easier than going to travel agency (Halbert, intrv). People can also manage their money from home with on-line banking, which is now offered by many banks, which also eliminates the need for an accountant. Companies like E-trade and Ameritrade are taking the jobs away from stock brokers by offering $8 trades on-line as well. All these transactions eliminate jobs and are dangerous too. 'Most online purchases today are

Briefing Paper On Islamic Banking System

2424 words - 10 pages Islamic banking - is it the new alternative in this time of financial uncertaintyCourse Instructor: Business CommunicationExecutive SummaryI am Md. Hasanul Islam working in Islamic development Bank (IDB) as an Islamic banking specialist. My Responsibilities are to provide consultancy service to the customer, analyze the current trend of the Islamic bank, and provide advice to the existing Islamic bank according to Islamic law. Here my client is