Feds Bust $2 Million Fraud Scam
Bank Insiders Key to Alleged ID Theft Scheme
by Tracy Kitten, Managing Editor
Source: Bank Info Security

Excerpt:

U.S. federal authorities have indicted 55 suspects for their alleged involvement in an identity-theft and financial crime ring that used insiders at banks, a non-profit institution, a high-end car dealership and a real-estate management company to steal personally identifiable information from more than 200 individuals and organizations.

Focus on Insiders
... Mike Braatz, senior vice president and general manager of bank fraud for Memento, a fraud-management software services provider, says the industry is making progress, where catching and thwarting insider fraud is concerned. "Five years ago, the financial industry didn't really want to talk about insider fraud," he says. "Now, it seems every day we're hearing about busted schemes, arrests and convictions."

But, as this most recent Chase scheme proves, fraudsters continue to innovate. "Financial institutions need to continue their investment in training, technology and internal fraud controls," Braatz says. "Their investments in fraud defenses need to be at least as innovative as the fraudsters."

Read full article at Bank Info Security.

Read more on Employee Fraud.