Wazua
»
Club SK
»
Life
»
Banks losing millions to fraudsters
Rank: Elder Joined: 11/5/2010 Posts: 2,459
|
mawinder wrote: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. Banks are trying but the fraudsters are technology savvy and they are a step ahead of us most of the times, and sometimes business growth concerns override the need for controls. Take the card skimming fraud that hit stanchart recently; i dealt with such a case 6 years ago where a customer lost 3m. Visa refunded the money eventually and our recommendation was for visa to run a campaign sensitizing cardholders on the risk of card skimming. What happened is that visa ran a campaign alright but to encourage people to use their cards more. There is a bank i know where their computers have everything disabled i.e. floppy drive,cd drive e.t.c. as a security measure. Then they bought new PCs and one kaguy realised the usb drive had not been disabled. He installed a keylogging software in the manager's PC and thus was able to acess the managers passwords. He attempted 60m and managed to move it to a cousin's account. But here is the problem, the cousin could not walk into a branch as he could not explain where the money had come from. So they were withdrawing 40K from the ATM daily. See the stupidity i was telling you about. We caught up with them about two weeks later by which time he had not even moved a million. controls are there but you and i know they are only as good as the people to enforce them.
|
|
|
Rank: Elder Joined: 4/30/2008 Posts: 6,029
|
FRM2011 wrote:mawinder wrote: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. Banks are trying but the fraudsters are technology savvy and they are a step ahead of us most of the times, and sometimes business growth concerns override the need for controls. Take the card skimming fraud that hit stanchart recently; i dealt with such a case 6 years ago where a customer lost 3m. Visa refunded the money eventually and our recommendation was for visa to run a campaign sensitizing cardholders on the risk of card skimming. What happened is that visa ran a campaign alright but to encourage people to use their cards more. There is a bank i know where their computers have everything disabled i.e. floppy drive,cd drive e.t.c. as a security measure. Then they bought new PCs and one kaguy realised the usb drive had not been disabled. He installed a keylogging software in the manager's PC and thus was able to acess the managers passwords. He attempted 60m and managed to move it to a cousin's account. But here is the problem, the cousin could not walk into a branch as he could not explain where the money had come from. So they were withdrawing 40K from the ATM daily. See the stupidity i was telling you about. We caught up with them about two weeks later by which time he had not even moved a million. controls are there but you and i know they are only as good as the people to enforce them. @FRM2011,banks should device ways to ensure such fraudsters are not employed in any bank again irrespective of whether they win the cases or not e.g by proper background checks or else these guys will move from one bank to the other stealing.
|
|
|
Rank: Elder Joined: 7/23/2008 Posts: 3,017
|
@FRM2011 I like the statement you made that controls are there but are only as good as the people who enforce them. I don't understand how a cashier can steal by walking out of a bank or transferring sh. 60M. This is a very large sum of money to handle physically and if transferred to another account, the amount should be frozen until all KYC procedures are completed. Frauds occur where managers and supervisors are lazy or not bothered to do their jobs "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
|
|
|
Rank: Veteran Joined: 11/15/2012 Posts: 1,110
|
FRM2011 wrote:.
He installed a keylogging software in the manager's PC and thus was able to acess the managers passwords. He attempted 60m and managed to move it to a cousin's account.
The moment someone installs a keylogger in your computer, you're as good as dead! Live Full Die Empty - Les Brown.
|
|
|
Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
|
An Airtel Networks Kenya Ltd accountant was yesterday charged with stealing more than Sh18.1 million. The court heard that Anthony Omariba Omwenga, with another not before the court, stole Sh18,156,320 from Equity Bank Kimathi Street branch on July 26. Omwenga was also charged with stealing Sh8,236,923.60 from Airtel at Co-operative Bank Aga Khan Walk branch in Nairobi on the same day. Chief magistrate Kiarie Waweru released him on Sh 2 million cash bail with a surety of a similar amount. http://www.the-star.co.k...ed-stealing-sh18-million Receive with simplicity everything that happens to you.” ― Rashi
|
|
|
Rank: Elder Joined: 4/30/2008 Posts: 6,029
|
Two in court over Sh67m bank fraud
0 Comments
Print
advertisement
By Nation Correspondent
More by this Author
Two people have been charged in a Nairobi court over allegations of defrauding a multinational bank of Sh67.2 million.
Mr Micah Mokua Mong’are and Mr Ishmael Nyabuti were arraigned before chief magistrate Peter Ndwiga last week accused of defrauding Barclays Bank Limited Sh67.2 million.
According to court documents, on diverse dates between July 1 and October 30 at Barclays Bank Office Park, in Nairobi, Mr Mong’are and Mr Nyabuti unlawfully duped the lender Sh50.2 million and Sh16.4 million respectively.
The two were arrested in Nyamira, Bungoma County, in possession of the said amounts.
Mr Mong’are was alleged to have been in possession of Sh50.2 million at the time of his arrest.
Mr Nyabuti’s counsel said that his client was summoned on Monday, November 4, by the Central Bank of Kenya committee investigating bank fraud and later released.
Be lenient
He therefore asked the court be lenient with his client in granting him a cash bail because he had willingly availed himself to the authorities.
He said, “I wish to ask this court to accord my client lenient pinpoints which are affordable and within his means to pay.”
The two suspects pleaded not guilty to the offence and were released on a cash bail of Sh1 million each.
What a fool.Hope he wins the case and the exhibit is forfeited to him.
|
|
|
Wazua
»
Club SK
»
Life
»
Banks losing millions to fraudsters
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|