NCJ Number
64684
Journal
BANKERS MAGAZINE Volume: 160 Issue: 4 Dated: (AUTUMN 1977) Pages: 71-74
Date Published
1977
Length
4 pages
Annotation
METHODS AVAILABLE TO BANK EXECUTIVES IN COMBATTING INTERNAL BANK FRAUD ARE DISCUSSED.
Abstract
THE EXTENT OF EMPLOYEE DISHONESTY IN PRIVATE COMMERCIAL AND INDUSTRIAL BUSINESS IS STAGGERING. BANKS, IN PARTICULAR, ARE TANTALIZING ATTRACTIONS TO THE DISHONEST EMPLOYEE BECAUSE OF THE AMOUNT OF MONEY THAT BANKS HANDLE AND THE COMPLEXITY OF THE SYSTEM THAT MAKES THEFTS EASY TO HIDE. FEDERAL AGENCIES WHO ARE RESPONSIBLE FOR DETECTING AND PREVENTING BANK CRIME HAVE FEW EMPLOYEES TO CONDUCT THOROUGH BANK EXAMINATIONS. MOREOVER, THEY ARE PRIMARILY CONCERNED WITH ENSURING THAT BANK POLICIES ARE SOUND AND THAT BANKS ARE FINANCIALLY STABLE, NOT IN UNCOVERING INTERNAL CRIMINAL FRAUD. INTERNAL AUDITS CAN ALSO BE EASILY CIRCUMVENTED BY THE CLEVER EMPLOYEE. AS PART OF AN INTERNAL BANK SECURITY SYSTEM, THE FOLLOWING PERSONNEL CONTROLS SHOULD BE EMPLOYED: PREEMPLOYMENT POLYGRAPH SCREENING TO REVEAL DISHONEST OR UNDESIRABLE APPLICANTS, OR EXTENSIVE BACKGROUND INVESTIGATIONS OF PROSPECTIVE EMPLOYEES, PERIODIC BACKGROUND INVESTIGATIONS AND POLYGRAPH EXAMINATIONS OF PRESENT EMPLOYEES, THE PLACEMENT OF UNDERCOVER AGENTS IN THE BANK TO DETERMINE IF EMPLOYEES ARE ADHERING TO PROPER PROCEDURE, AND AN EMPLOYEE SECURITY-TRAINING PROGRAM. IN SUM, BANKERS NEED TO AUDIT, INVESTIGATE, AND EDUCATE IN ORDER TO STOP THE EMPLOYEE THIEF. (WJR)