Internal fraud detection: Motivators and warning signs

Employee fraud has undeniable financial and reputational consequences for financial institutions. Explore the Fraud Triangle and six prevention tactics. Emphasize the need for robust internal control systems to minimize fraud opportunities and prevent incidents.

Employee fraud is unsettling. The headlines splash the news far and wide:

Credit union CEO imprisoned for embezzlement.

Federal investigators say bank employees opened fake accounts for sales goals.

The cost of employee fraud is devastating for a financial institution – both financially and reputationally. It can leave accountholders distrusting their financial institution, and it can poison the whole spirit of the working environment for other employees.

The Fraud Triangle: 3 motivating elements

The Fraud Triangle explains motivations behind stealing. Don’t forget: these crimes are more than embezzlement – they are also data theft or bribery.


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