Fraud Prevention Detection and Management

FraudPreven+on,Detec+on,andManagement

VivianLim

1StValleyBank

2010RBAP‐MABSNa.onalRoundtableConferenceHya=HotelandCasino,ManilaJune2‐3,2010

1st Valley Bank, Inc.

Fraud Prevention: Bank Policies and Procedures

• HR Policy on Personnel: > Rotation of account specialists and annual leave of

bank officers

• Procedures: 1. Unannounced visits of the Supervisors to clients to

validate account status 2. Accountable receipts are used on field collections 3. Daily checking and turnover of receipts 4. Dual client’s card (client’s copy must be signed by bank staff) (bank’s copy must be signed by the client)


Fraud Prevention

5. Does not allow receipt of loan proceeds by a representative

6. Daily callback of transactions 7. Clients are informed during orientation that they

should always ask for a receipt for every payment made


Fraud Detection

• Bank’s policies: 1. Suspension or leave without pay while full audit

is being conducted 2. Salaries and benefits are on hold

• Initiatives: 1. We train our auditors/supervisors (some are

account specialists before) 2. We mobilize the auditors and supervisors


Fraud Detection

1. Other Account Specialist/s at the branch and the Supervisors know the accounts handled by one employee

2. The bank files legal action


Fraud Detection

3. Recovery: > We go after the cash bond/fidelity bond > We go after the family and negotiate

settlement > We go after the assets of the offender

or ask collateral from him or from his family (e.g. home appliances, land title, etc)


Fraud Management

Handling of information on cases of fraud: > The bank publicizes it internally to

serve as lesson to other bank staff


Fraud Management

Managing out: 1. Re assignment to another department not

handling cash 2. Transfer to farthest branch 3. Termination of employee


THANK YOU!!!

1st Valley Bank, Inc. (A Rural Bank) www.1stvalleybank.com

Your Lifetime Friend

Business

Fraud Prevention Detection and Management