Bank Frauds in India are Substantial

2419 Words Feb 16th, 2018 10 Pages
It is increasing with the passage of time. All the major operational areas in banking. There are different area in Bank Deposits, loan, inter branch, accounting, transaction etc. Bank fraud is a big business in today's world. Banks these days are being duped of crores of Rupees, thus destabilizing investor’s confidence. The year 2005 witnessed the wiping of Rs. 1134.4 crores from the banking industry in India due to bank frauds, which was about 2.5 times the amount lost in the previous year. Banks are dealing with public‟s money and hence it is imperative that employees should exercise due care and diligence in handling the transactions in banks. Recent rise in bank frauds calls for tightening of security mechanism. A strong system of internal control is the most effective way of fraud prevention. The banks should increase their efforts to raise the level of security awareness in their organizations to combat frauds.
Ziegenfuss (1996) performed a study to determine the amount and type of fraud occurring in state and local government. The study revealed that the most frequently occurring types of fraud are misappropriation of assets,theft, false representation; and false invoice. The reasons for the increased fraud in state and local governments are poor management practice; economic pressure; weakened society…

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