Fraud Investigation > Banking, Savings & Loans

Bank, Savings & Loans, and Building Society systems are normally subject to strong reconciliation controls but controls need to be of a preventive nature to stop fraud. This is particularly the case with Funds Transfer where subsequent tests may establish how it happened but not stop the loss. Other types of fraud can be on-going and spotted by analysis and exception testing. This is true of dormant accounts, revolving loans, and money laundering. IDEA is a useful tool for testing in this area.

The following are commonly used tests (grouped by type).

Money Laundering

  • Identify accounts with a large average value of transactions. It may be necessary to first convert the transaction value to an absolute amount (use @ABS) to pick out both large debit and credit transactions. (Use summarisation and then a virtual field to divide the value by the number of records). It is common for there to be a small number of high value transactions through an account being used for money laundering.
  • Identify matched debit and credit transactions on the same account within a short time period. Such transactions would be identified through a duplicate key detection using the account number and absolute transaction value as the key.
  • Search for large rounded transaction values, e.g., $950,000
  • Identify multiple accounts for particular individuals
  • Identify large cash deposits
  • Test customer identification procedures are in operation by searching for missing data in date of birth, Social Insurance, Social Security number, National Insurance number, Driving Licence number, etc.
  • Cross check customer addresses against mail address lists

Dormant Accounts

  • Ensure accounts with no movement have been flagged as dormant
  • Identify Dormant accounts with movement
  • Check transfers from dormant to staff accounts
  • Check changes of address to dormant accounts. Cross check new addresses to employee addresses.

Revolving Loans

  • Check for loans with common address/postal code/same name
  • Check loans advanced to staff accounts