Banking Fraud And The Banking Industry - 1481 Words

A banking fraud is the use of illegal means to gain money, assets from depositors or clients fraudulently while posing as a bank, agent or any other financial institution. In many countries and especially the United States, bank fraud is a criminal offense even though experts refer to it as a white collar crime due to the manner in which it is carried out. The paper below will look at the vulnerabilities that face the banking industry while using the example of Stanford Financial Group Company to show how the banking fraud can be committed. Moreover, the paper will also look at the different frauds that can be committed in the banking sector and how the vulnerabilities can be avoided. A fraud prevention program will also be created meant to help companies in the banking industry prevent and detect crimes and frauds before they occur (Riggs, 2007). Stanford Financial Group Company: A Brief History The Stanford Financial Group Company was a privately owned international group that specialized in financial services under the control of Allen Stanford. Allen Stanford controlled the financial company until United States authorities seized in at the end of 2009 due to what came to be known as Ponzi scheme or scandal. Among its many groups was the Stanford International Bank, with more than 50 offices in 136 countries around the globe. The company offered diversified financial services such as brokerage and investment advisory, private and commercial banking, advising clients onShow MoreRelatedFraud as a Negative Catalyst in the Nigerian Banking Industry5170 Words   |  21 Pagesorg Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 2(5):357-363 (ISSN:2141-7024) Fraud as a Negative Catalyst in the Nigerian Banking Industry Akindele R.I Department of Management and accounting Obafemi Awolowo University, Ile Ife, Nigeria ___________________________________________________________________________ Abstract Fraud in the Nigerian Banking Industry before the recent merger and acquisition and recapitalisation efforts was at alarming rate. 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