@yekeyeke, you are obviously a greenhorn, your curtness to @ 2012's logical qstn is uncalled for & surprising. Iko nini? Tuliza joto bro, na makinika nami.Listen...
KShs 7m is unroasted peanuts to a bank of Stanchart's stature - did you know Barclays Tanzania, for instance, lost about 1 million USD dollars (say KShs 80m) last yr through fraud? Do you know how much Kenya's banking industry has lost to fraudsters in the past 5 yrs?
It doesn't have to be money lost from a customer's account, sometimes its cash from the bank is pilfered from various internal accounts, procurement, etc. Each organisation in the world must have come across a fraud - either attempted of successful.So its pretty much a very prevalent crime.
The biggest enemy to fighting fraudsters in the banking industry are the banks themselves as they prefer sacking in lieu of prosecuting the frausdsters due to reputational risk considerations. Which is why I really commend Stanchart for suing the riff raff in this case. Such efforts help fight what is becoming a huge systemic issue in banking.
Then again it is not restricted to banking as it is a corporate (white collar) crime and many companies in kenya and world over have lost billions of dollars to this crime.
The key in banking is to have proper risk management framework (adequately and frequently tested controls, vibrant policies & procedures, and a vigilant Risk, Audit and Compliance Dept). Appropraite insur. & constant anti-fraud awareness & training of staff also helps.
http://www.jamiiforums.c...d-tra-us$-5-million.html