What are the different types of fraud with a financial institution?

types of frauds with financial institutions are almost as unlimited as the number of criminals committing crimes. Although the details of each scheme might vary, many of these fraud fall into two categories: check fraud and electronic fraud. In general, people who commit control fraud use written proposals to raise money and electronic fraud use information collected over the Internet.

One of the most common types of fraud with financial institutions is fraud control. In its simplest form, this fraud is made by changing information about the recipient or the amount of payment legitimately written check. More complex schemes include controls of counterfeiting or getting empty checks according to theft. These types of fraud are generally focused on account holders. Some other disadvantages, including fraudulent accounts and effective overdrafts, mainly affect the financial institution.

Many banks have added security measures to protect themselves and their customerThey before funding with a check institution, but individuals are recommended to take certain steps to further protect their accounts. For example, to protect against theft, it is recommended that all checks be sent and received from locked mailboxes. All fields on the concept should be completely filled with lines drawn from the end of writing to the end of the field. It is also proposed that a blue pen be used because it is more difficult to duplicate mechanically. Moreover, frequent reconciliation between bank statements and personal records can help identify fraudulent activities and take steps against future events.

In an effort to combat fraud with financial institutions, many banks and customers decide to carry out their business electronically. This reduces the option of control fraud, but creates the possibility of attacking with the computer. Most institutes that process financial information admirable on this grapeBU responded by creating extremely secure websites. However, the criminals replied by trying to scheme the account holders instead.

fraud of electronic financial institutions is most often the result of a practice called phishing. In this practice, the criminal sends people e -maly that have links to clicks on banks, online stores or companies with public services that recipients use. However, these links do not lead to the actual website of the company, but the sites that seem identical to the legitimate sites. After the victim entered his password information, Scammer has access to the victim's account on the legitimate website. The most effective way to fight this type of fraud is to never click on the link in the e -mail, but either to visit the site directly or call the company.