BIN Checker Basics

Types Of Banking Fraud That You Should Know



The banks should be a safe place to keep your money. This objective is realized in today’s society. This explains why there are many banks today and most people in various countries have account with one or more banks. Unfortunately, this world is not a perfect world. The banking system is not yet a perfect system. Fraudsters still find a way of stealing from the banks and their customers. There are different ways through which criminals steal from the banks or their customers. You need to know these ways so that you will take appropriate precaution. Here are the various kinds of banking fraud.

Online banking fraud

As the name suggest, this is a type of banking fraud committed through the internet. There are different ways through which internet fraudsters steal from bank’s customers. In general, they obtain account details of an online account holder in a fraudulent manner and steal from their account. Various kinds of online banking fraud are Phising, hacking and others.

Credit card fraud

This is a type of fraud committed via credit card. Here, the criminals through a number of fraudulent means obtain credit card information of their victims and make purchases with their credit cards without their approval. This type of crime is increasing on daily basis. About $11.27Bn has been lost through this means across the world in 2012.

Insider fraud

It is a type of fraud carried out by banks’ employees which can cause a huge financial loss to a bank. When dealing with your bank employees, you should also be careful as not all of them are sincere.

Cross channel fraud

This is a complicated kinds of stealing in which the criminals carry out their criminal activities using various banking channels.

Other kinds of banking frauds are:

  • Combat fraud
  • Money laundering