Bank Fraud Training

Bank employees have to be trained to identify bank fraud activities. Banks can lose thousands, even millions of dollars per year due to bank fraud. Training can cover a number of activities.

Significance

Bank tellers have to be able to distinguish legitimate transactions from fraudulent activities. A teller has to be able to tell if money being deposited is real or counterfeit.

Effects

Bank employees have to take a close look at identification. Some customers will manufacture fake identification so that they can commit fraudulent transactions.

Prevention/Solution

Bank employees have to safeguard customers' account information. They must make sure they are speaking to the actual customer by verifying key pieces of information on the bank account. Bank employees are trained to never conduct transactions on an account for anyone other than the account owner.

Function

Some banks will shred all paperwork that remains in the branch at the end of the day. This also helps safeguard customer information.

Considerations

Banks are sometimes notified when money orders or cashier's checks from other financial institutions have been stolen. Employees from the bank have to be on the lookout for illegitimate or stolen checks.

Warning

Bank employees are trained on the proper procedure for placing personal checks and other checks on hold. If they release the money before the checks clear, it may result in a charge-back to the account and ultimately cost the bank money.

References

• sustainability.standardbank.com: employee training
• senior-inet.com: banks can help fight fraud against seniors