Problem

Bank fraud

Other Names:
Fraud in savings banks
Nature:

Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. In many instances, bank fraud is a criminal offence. While the specific elements of particular banking fraud laws vary depending on jurisdictions, the term bank fraud applies to actions that employ a scheme or artifice, as opposed to bank robbery or theft. For this reason, bank fraud is sometimes considered a white-collar crime.

Incidence:
Widespread fraud in the USA savings and loan institutions during the 1980s is complicating government attempts to rescue thousands of institutions declared insolvent. In 1990 it was estimated that 60% of the savings and loans institutions seized in order to protect investors were the victims of fraud.

In 1998, the head of the World Bank established a special internal fraud team and hired a team of external investigators to examine allegations of corruption and embezzlement against bank officials in Washington. Among the projects under scrutiny were World Bank-funded schemes in Russia, Japan and Indonesia, countries at the centre of the international financial crisis.

Values:
Fraud
Problem Type:
E: Emanations of other problems
Subject(s):
Banking
Savings
Crime
Date of last update
10.08.1998 – 00:00 CEST