“Around 30 percent of our survey respondents have indicated that it took them 6-24 months to detect fraud. Close to 22 percent of survey respondents said they could recover only up to 25 percent of the fraud loss amount. These statistics indicate a move towards reliance on multiple channels, including technology based channels, to detect fraud, as indicated by a significant percentage of respondents.”
“A little over 40 percent of survey respondents indicated they had not started implementing dedicated forensic technology tools for investigation, whereas, 20 percent of respondents had partially implemented these tools. Only 20 percent indicated that they had implemented forensic technology tools for investigation, and that these tools were effective.”
“We recommend that banks undertake the following pre-employment checks at the minimum: • Confirmation of identity • Police check for any convictions • Residence/ address check • Verification of qualifications claimed, and • Employment check with previous employers”
“Use dedicated forensic tools during an investigation process Today’s business environment generates vast amounts of data. The key to a successful investigation is to not only manage this data and turn it into meaningful information, but also collect, preserve and analyze large and disparate data to support or refute facts and allegations of a case. Forensic tools can be used to navigate IT systems for evidence of malfeasance, such as information deletion, policy violations and unauthorized access. A wealth of information can be recovered from computers, including active, deleted, hidden, lost or encrypted files or file fragments which can be presented in a court of law. These include tools for forensic imaging, electronic discovery, data anomaly detection and records management which can help banks and their legal counsels in handling and analyzing large and complex data issues to help support their cases.”
The question that keeps coming to mind is how empty was RBI Board on 8 Nov 2016? Former RBI chief Subbarao in an interview said there have been precedents in the past as well:
Q: There are only three members of the RBI board, external members. The rest are all RBI Deputy Governors and Governor and Finance Ministry officials. The fact that 6-7 seats are vacant, did all this already pave the way for very weak opposition?
A: I do not think so. I think that is reading too much conspiracy into this. There have been several instances over extended period, the RBI board was not fully positioned. At least on the specific point you are referring to that the RBI board is not fully positioned. Yes, that is a shortcoming, that is not desirable, but to see some conspiracy in that and to say that the decision on demonetisation would have been any different or the implementation would have been any different if there had been seven more members on the RBI board is unrealistic.
“Twenty-five hedge-fund managers make more money than all of the kindergarten teachers in America combined,” he told the New Yorker. “Being one of those twenty-five doesn’t feel good. I think they’ve developed a heightened sensitivity.”
2015 bank fraud survey by Deloitte
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