How to Report Bank Fraud: A Complete Guide

You don’t have to be a banking professional to know that there’s a lot of fraud and scams out there. The truth is that fraudsters are constantly trying to get into your client’s bank accounts, credit cards, or other financial accounts. How do they do it? They might call your customers pretending to be a representative of the bank or credit card company, or they could send emails with links to phishing websites that try to steal their information. Fortunately, there are ways you can help prevent these kinds of scams. If they do happen, there are steps you can take to investigate them and protect your clients and banking institution from future fraud attempts. In this article, we’ll walk through the process of reporting fraud so your company can keep its clientele safe from scammers and other criminals who want access to their account information.

Common Types of Bank Fraud

Before we get into the steps for reporting fraud, it’s important to understand what exactly bank fraud is.

Bank fraud occurs when someone misuses a person’s personal or financial information by using their identity to commit crimes such as identity theft, credit card fraud, or check fraud. The Federal Trade Commission (FTC) estimates that American consumers reported losing more than $5.8 billion to fraud in 2021, an increase of more than 70 percent over the previous year. If this happens to any of your clients, you can report the crime to help stop the perpetrator from doing it again and ensure they face the consequences for their actions.

Bank fraud can be committed in many different ways depending on who the perpetrator is and where their intentions lie:

Identity theft: Someone uses your customer’s personal information (like a Social Security number) to open new accounts or make purchases without them knowing about it

Credit card fraud: A malicious actor uses a credit card without permission or steals cash from an ATM machine using someone else’s credentials

Check fraud: Fraudsters use forged checks that were made out in your client’s name or steal checks from mailboxes and then alter them before depositing them into someone else’s account

ATM/debit card skimming: Thieves attach a false device onto an ATM machine or hand-held debit card reader that stores information when users insert their card into it during financial transactions, allowing criminals access to their accounts later on.

Step-By-Step Guide to Reporting Bank Fraud

Your customers view your bank as their financial security blanket. They trust it to keep their money safe, and they expect your institution to do everything possible to prevent fraud and other illegal activities. Here’s a step-by-step guide on how to report bank fraud.

Identify the Fraud

The first step is to identify the fraud. You may be able to tell right away that something is off when a customer comes into your branch or office with a suspicious story. But sometimes, it takes more time and investigation before you can be sure that something illegal is going on.

If you’re unsure whether or not a situation qualifies as fraud, ask yourself these questions: Is there any way it could be true? If so, how would I know if what they’re saying is true? If not—or even if it seems like there might be some truth to it—do they have enough evidence to convince me beyond a reasonable doubt?

Report Financial Crimes and Fraudulent Activities

Once you’ve identified potential fraud and determined that it’s actually happening, report it as soon as possible. The sooner you report the fraud, the more likely it is that you’ll be able to stop it from happening again. 

Contact the police or your local FBI office. These agencies compile individual complaints into databases used by law enforcement agencies to detect patterns of criminal activity, open investigations, and pursue prosecutions.

File a Complaint

Federal agencies compile individual complaints into databases, which are used by law enforcement agencies to detect patterns of criminal activity, open investigations, and pursue prosecutions.

These include:

• United States Postal Inspection Service Mail Fraud Complaint Form
  Report efforts to obtain money or valuables by mail fraud.
• Federal Trade Commission Complaint Assistant
  Report identity theft or complaints regarding credit reports, debt collectors, or poor business practices.
• Internet Crime Complaint Center
  Report spam attempts to fraudulently obtain money or valuables, and criminal activity using the internet.

Learn More About Bank Fraud

As a banking professional, you know that fraud is serious business. It can cost your financial institution millions of dollars—and it’s not just banks that are vulnerable. Credit unions, money service businesses, and other financial institutions are also susceptible to fraud.

That’s why we offer our Certified Fraud Specialist course at BankersHub: so you can get up-to-date on all things fraud-related. This course will teach you everything from recognizing the signs of fraudulent activity to understanding how policies can be changed to protect against future incidents. We’ll cover everything from how to spot potential fraudsters to what happens when you do report them.

You’ll learn about:

• The different types of fraud and how they can affect your institution
• What information you need in order to report a case of fraud
• How long it takes for cases to be investigated
• Who works on these investigations
• What happens once an investigation has been completed
• What happens if someone is found guilty of committing fraud against your institution
• and much more!

Bank fraud is a serious crime that can take many forms. Fraud is so rampant in the banking industry that it’s essential for everyone in the sector—from senior executives to entry-level workers—to understand what types of fraudulent practices are most common and how best to prevent them from happening again.