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Banks losing millions to fraudsters
Rank: Elder Joined: 11/5/2010 Posts: 2,459
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I have been involved in investigating internal frauds by bank staff and the figures are so mind-boggling I cannot share here even under the cover of an internet forum.
But with time I have learnt one lesson I hope these sick youngstars would know; CRIME STILL DOES NOT PAY !!!!It appears to until you take part in a fraud and then you realise you have just croosed-over to the underworld where rules don't apply. Let me give you a real-life story of a young man who defrauded one of the top banks Kes.32M a few years back. If you met him today you would really pity him.
After appearing in court and posting bail of Kes.2M, he was driving home in his brand new subaru when his vehicle was surrounded by three flying squad vehicles. They came out brandishing guns and handcuffed him. Then they planted on him what they claimed to be 5Kgs of cocaine. He still does not know whether it was ngong or karura forest but they did despicable things to him inside there. He bought his freedom with Kes.2M cash. The rogue cops know you have the money and more importantly you have it in liquid cash. From that day it bacame a ritual with a different set of cops and new allegations everytime. At one time his house in pangani was surrounded by over 20 armed cops. Neighbours could not believe they had been staying with a most dangerous criminal. He went to hide in the village but they snatched him from there as well. By the time the court jailed him for 4 years, he didn't have a cent to his name. The boy is now out and he came to us requesting for a chance to give talks to bank staff to warn them about engaging in crime but most banks were too rigid. So the theft continues and the young fraudsters learn too late that the old mantra still holds true; CRIME DOES NOT PAY.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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FRM2011,you mean there are no success stories?
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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D32 wrote:Ok, so, which bank has the least or no internal fraud?
I&M? CFC Stanbic? DTB? Standard Chartered? That will be hard to know as most banks deal with fraud internally to avoid bad press especially to the shareholders. But I don't think any bank is immune especially if the fraud is high level. I wonder, were the Stanchart ATM hit also an inside job? I bet they were.
BBI will solve it :)
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Rank: Elder Joined: 12/7/2012 Posts: 11,939
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2012 wrote:D32 wrote:Ok, so, which bank has the least or no internal fraud?
I&M? CFC Stanbic? DTB? Standard Chartered? That will be hard to know as most banks deal with fraud internally to avoid bad press especially to the shareholders. But I don't think any bank is immune especially if the fraud is high level. I wonder, were the Stanchart ATM hit also an inside job? I bet they were. most of the thieving staff never experience success because the deals have long chains of people and they also steal when still very young not knowing the real value of money and therefore they end up wasting it. Success stories are few and far apart! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 5/7/2009 Posts: 155
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I used to work with a lady who pocketed 10M as a cashier. She resigned and started 'good' life. The bank took her to court and she came to the limelight. Her villagers came to know about it and she was fleeced everything she had through day and night robberies.
It is the power of attraction in force. Money from crime dissolves through crime.
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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@D32, all banks are hurting. Equity gets hit most of the time for the simple reason that the number of customers and volume of transactions is by far the largest. Plus the little secret of being the worst employer among the big 5. I remember one of the top-5 banks which almost closing the year with less than 10M reported in frauds. That would have been a remarkable feat, then in December they lost 230M in one transaction.
@mawinder, these young boys are not criminals. Indeed, the frauds they pull are ussually their first encounter with crime. They are so predictable; keep all the cash hidden in liquid form, don't buy land as it can be tracked down, buy a nice car to impress your agemates. There is ussually very litlle planning on what to do after stealing. Ofcourse some go under never to be seen again, and leave everyone wondering "how smart". That is until the parents come forward and claim they have also not heard from their sons for years. And those of us who know a thing or two about the underworld make a silent prayer for their souls. I will tell you this for free; There are probably over two hundred men plotting how to get a slice of the 60M that stupid boy stole from KCB. He is a walking ATM. Tell me where he will be in 5 years time.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Angelica _ann wrote:most of the thieving staff never experience success because the deals have long chains of people and they also steal when still very young not knowing the real value of money and therefore they end up wasting it. Success stories are few and far apart! No thief experiences success. The curse you bestow on yourself from stealing will never let you know peace.
BBI will solve it :)
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Rank: Member Joined: 7/16/2010 Posts: 158 Location: world
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FRM2011 wrote:@D32, all banks are hurting. Equity gets hit most of the time for the simple reason that the number of customers and volume of transactions is by far the largest. Plus the little secret of being the worst employer among the big 5. I remember one of the top-5 banks which almost closing the year with less than 10M reported in frauds. That would have been a remarkable feat, then in December they lost 230M in one transaction.
@mawinder, these young boys are not criminals. Indeed, the frauds they pull are ussually their first encounter with crime. They are so predictable; keep all the cash hidden in liquid form, don't buy land as it can be tracked down, buy a nice car to impress your agemates. There is ussually very litlle planning on what to do after stealing. Ofcourse some go under never to be seen again, and leave everyone wondering "how smart". That is until the parents come forward and claim they have also not heard from their sons for years. And those of us who know a thing or two about the underworld make a silent prayer for their souls. I will tell you this for free; There are probably over two hundred men plotting how to get a slice of the 60M that stupid boy stole from KCB. He is a walking ATM. Tell me where he will be in 5 years time. Happened to collegemate of mine.Worked for KCB in Kenya and regionally. Then started having problems at work fraud related. Bank blames him. Him and family claim he uncovered fraud by bank higher ups.Court cases. He was to be reinstated in the job. To cut the long story short he dissappeared in 2010 and the family have never heard of him since then. They suspect he was murdered and his body dumped somewhere. The lack of closure is just painful. The bank is insisting that the guy is in hiding.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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mdudu wrote:FRM2011 wrote:@D32, all banks are hurting. Equity gets hit most of the time for the simple reason that the number of customers and volume of transactions is by far the largest. Plus the little secret of being the worst employer among the big 5. I remember one of the top-5 banks which almost closing the year with less than 10M reported in frauds. That would have been a remarkable feat, then in December they lost 230M in one transaction.
@mawinder, these young boys are not criminals. Indeed, the frauds they pull are ussually their first encounter with crime. They are so predictable; keep all the cash hidden in liquid form, don't buy land as it can be tracked down, buy a nice car to impress your agemates. There is ussually very litlle planning on what to do after stealing. Ofcourse some go under never to be seen again, and leave everyone wondering "how smart". That is until the parents come forward and claim they have also not heard from their sons for years. And those of us who know a thing or two about the underworld make a silent prayer for their souls. I will tell you this for free; There are probably over two hundred men plotting how to get a slice of the 60M that stupid boy stole from KCB. He is a walking ATM. Tell me where he will be in 5 years time. Happened to collegemate of mine.Worked for KCB in Kenya and regionally. Then started having problems at work fraud related. Bank blames him. Him and family claim he uncovered fraud by bank higher ups.Court cases. He was to be reinstated in the job. To cut the long story short he dissappeared in 2010 and the family have never heard of him since then. They suspect he was murdered and his body dumped somewhere. The lack of closure is just painful. The bank is insisting that the guy is in hiding. @FRM2011,indeed crime does not pay but can't banks put in place controls to minimize losses?Losing 230m is quite mind boggling,may be staff should have limits of transaction amounts.
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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According to a report by Deloitte, half of the Sh4.1 billion ($48.3 million) fraud cases affecting east African banks occurred in Kenya in 2011 as technology made crime easier. A single bank in the region lost Sh2.72 billion ($32.1 million) through data manipulation, accounting for nearly two-thirds of the total fraud. http://www.businessdaily...8/-/yafx4a/-/index.html
Which bank is this that lost 2.7 Billion? Eish! That entire net profit for a mid-sized bank. ************************** mdudu, do the big shots ever get caught?  GOD BLESS YOUR LIFE
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