Sun National Bank's Fraud Cases

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Introduction

This paper gives comprehensive and credible information about the impact of fraud and abuse of office cases that occur in various settings. It seeks to equip various stakeholders in the financial sector with reliable information on key issues that appertains to the causes of fraudulent cases, effects, and mitigation modalities. The focus is placed on fraudulent cases since it is a vice that currently ails most institutions thereby impeding their growth in terms of financial capacity, structural set up and market share. In the recent past, financial institutions such as banks have recorded high number of cases of fraudulent activities. The activities that are being executed by both external individuals and insiders or employees have exposed the institutions to huge loses. This has called for the development of superior controls that are economically viable and performance oriented especially in the financial sector to help in ensuring holistic mitigation of such cases. This paper focuses on the recent fraud case that involved Sun National Bank that operates internationally. The bank lost huge amount of money in an act that was considered done by over fifteen individuals.

The state of fraudulent activities in the banking sector

Certainly, the most targeted institutions where fraudulent activities seem to be a promising “career” are the banks. The institutions for example in US lose approximately Sh.15.5 million on a daily basis in a multifaceted fraud, which has persistently threatened the growth of the banking sector. The shocking revelations by the independent analysts, as well as, the bank fraternity indicate that innovative fraudsters have now employed the uses of various advanced means to...

... middle of paper ...

...ins archiving documents in a digital and sure manner (Electronic banking law and commerce report 87). These imaging detectors assist in identifying identity fraudsters who are in search of loans and credit card from the bank.

How things have changed

With synthetic identity fraudsters encompassing our environment, most of the people have become more prudent in securing all their financial documents in the most confidential and secretive manner. Due to this, there has been a recent significant decline in the number of Sun National bank fraudsters. This can also be attributed to the harsh condemnation of the caught fraudsters as many were condemned to stay behind bars for a total of 30 years. Freedom being snatched away from such criminals was not a piece of cake to swallow and this has become an example to many who were previously opting to be identity fraudsters.

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