Constitutes Fraud

Don’t be a Victim! Know What Constitutes Fraud

While in the past, banking meant clients walking into your lobby to handle various transactions, the rise of the digital age has changed this. Nowadays, you can have a long-serving client for your bank who you might never meet face-to-face thanks to online banking. While this has proven extremely efficient for you and clients, it has also introduced a legal angle that might see your bank facing a lawsuit for breaching your clients’ confidentiality or losing their money. This is in the form of online banking fraud
Getting a litigation attorney in Wichita on a retainer basis for your bank is essential even if you take crucial steps to minimize the odds of online banking fraud. This way, the lawyers can handle all legal issues before your client is disgruntled and drags you through a costly and messy court trial. The following are the common forms of online banking fraud an attorney will help you successfully navigate and settle with minimal impact on your operations.

Money Laundering

This crime is the leading cause of compliance fines slapped on financial institutions. Most banks employ the smart transaction segmentation system, so they spot money laundering attempts immediately to avoid penalties for this. Most banks are now using artificial intelligence for the monitoring of activities in their organizations and the distinction between false and genuine positives. This ensures they comply with financial regulations and fraud reporting guidelines.

Internal Fraud

You may employ due diligence when picking the workers for your bank, but sometimes they will still defraud your clients. Though the employee will be held legally liable for his or her actions, you as the employer might also be found liable in some cases. Employing strategies and technologies to pinpoint any expenses and patterns that look dodgy is essential to minimize internal fraud for your bank. Your lawyer might also recommend changing your employment contracts to reduce your role in case an employee is found guilty of internal fraud.

Credit Card Fraud

This is one of the most common forms of fraud affecting financial institutions. Today, there exists a machine learning algorithm that might reduce the possibility of credit card fraud. This algorithm separates potentially fraudulent transactions from acceptable ones. However, while banks do have countermeasures in place now for minimizing their clients’ risk for credit card fraud, the technologies are not foolproof.

Mobile Fraud

Most financial institutions now have mobile apps to reach most of their clients. Naturally, fraudsters have come up with various strategies for committing fraud over the remote deposit capture system that most apps utilize. This allows remote scanning and transmission of check images to a bank deposit using encrypted connections. Fraudsters can capture these details and present the clients’ check details for cashing.
Hiring a law firm for your bank when you have already invested so much in security might sound like a waste of your resources. You should take into account that the above forms of online fraud come in several forms and are likely to be constantly changing to workaround or defeat countermeasures. You might thus be crippled by fraud even when you have the most sophisticated systems in place. In this case, an attorney on a retainer basis will be readily available to handle the legal issues arising from any crime committed.

Spread the love
Scroll to Top