Founded in 2001, SDC CPAs provides fraud investigation and forensic accounting services to companies in the United States. Recently, SDC CPAs was hired by an insurance company to investigate a claim for fictitious loans submitted by a bank that had suffered losses as a result of embezzlement by insiders.
The financial industry is one of the most regulated industries in the country. However, this does not prevent criminal actors from committing fraud to the detriment of financial companies. Often, the fraudulent actors work in the bank. In fact, according to the Federal Deposit Insurance Corporation, half of all bank fraud is perpetrated by insiders. They affect the big banks just as much as the small, with 23 percent of cases involving $1 million or more in losses.
According to a 2016 Association of Certified Fraud Examiners report, 75 percent of insider bank fraud is committed by people working in accounting, sales, upper management, operations, purchasing and finance, and customer service. Tactics used by fraudsters include skimming funds from less active or inactive accounts such as those of the elderly, reversing insufficient fund fees and crediting the charges to their personal accounts, and stealing customer information and opening credit accounts with it.
Such fraudulent activities damage the credibility of banks and lead to substantial losses, which some banks forward to insurers through claims. To prevent such outcomes, banks and insurers should work with fraud-prevention experts to tighten their internal checks and balances.
SDC CPAs 