Rise in bank staff stealing from customers

Junior bank workers who are not rewarded as lavishly as those at the top of their trade are increasingly topping up their meagre pay with ill-gotten gains.

Instances of crooked bank staff stealing money through theft or deception rose by more than 40% last year, according to CIFAS.

The anti-fraud organisation said that dishonest actions by finance workers were the main driver of a 14.5% overall increase in the number of insider frauds recorded in 2011 when compared to the previous year.

Worryingly, one of the more popular methods of stealing was found to be cashiers creaming money off of customer accounts. Many of the frauds recorded involved the theft of money from older people. CIFAS said the perpetrators of such thefts are no better than muggers in the street.

A third of all theft committed by bank employees involved the stealing of cash as opposed to electronically-based crime. The overall number of dishonest actions by staff to obtain a benefit through theft or deception rose from 156 in 2010 cases to 220 last year – an increase of 41%.

CIFAS said that many organisations remained reluctant to recognise the risk of fraud being committed by its staff.

Instances of bank staff unlawfully obtaining and disclosing personal data fell by 25% last year, after a dramatic rise in data theft the previous year. CIFAS said the fall demonstrated an increasing awareness of the danger posed by data theft in the banking industry, and was evidence that steps were being taken within organisations to counter the threat.

Richard Hurley , CIFAS communications manager, , said: “The damage done by fraudsters who sit within an organisation is not just upon a balance sheet but also on staff and customer morale, reputation and can even result in regulatory and legal sanctions.”

“While the 14.5% increase witnessed in 2011 demonstrates that some organisations are increasingly aware of, and looking out for, fraud committed by insiders, the surge must also underline how prevalent the danger actually is. To assume that staff committing fraud will not affect your organisation is pure folly.”

Michelle Mitchell, charity director general of Age UK said: “Any case of bank staff stealing from customers is unacceptable and this increase is very concerning – particularly at a time when banks are talking about regaining the public’s trust and confidence.”

“Common sense measures such as asking for and then keeping a receipt for any deposit or withdrawal, can help in preventing fraud. However it’s important that people remember that banks are still the safest place to keep their money. “