Bank fraud cases are rife: four pillars of mitigation
The public’s attention has recently been drawn to a case of bank fraud in the form of embezzlement. The case was regarding the loss of a number of customers’ deposits in a private bank in Bali. This case began to unfold last February, and the number of victims has increased. The amount of loss is currently estimated at around Rp 56 billion with the number of victims totaling to 14 customers.
Bank fraud modes
Such fraud is usually carried out by several unscrupulous bank employees cooperating with each other. According to the Chief Executive of OJK Banking Supervision Heru Kristiyana as quoted from Bisnis.com (8/11/2020), fraud that occurs in banking is increasingly difficult to detect when bank personnel cooperate with customers so that the layered security that has been implemented by banks can be breached.
The impact of fraud is very detrimental from the customer’s side and the bank itself. Fraud has caused 112 BPRs to go bankrupt since 2005. According to the member of the Board of Commissioners of the Deposit Insurance Corporation (LPS), Didik Madiyono, as quoted from Bisnis.com (15/6/2021), the fraud was carried out by certain individuals through various modes. According to him, fictitious credit and unilateral disbursement of funds are the most dominant modes.
The existence of strict regulations and good governance by banks can minimize the possibility of fraud. This effort was pursued by the Financial Services Authority (OJK) by issuing POJK 39/2019 regarding the implementation of an anti-fraud strategy for commercial banks. Through POJK 39/2019, which has been in effect since January 2020, banks are required to formulate and implement an effective anti-fraud strategy. The formulation and implementation of an anti-fraud strategy contains at least four pillars, namely:
- Investigation, reporting, and sanctions.
- Monitoring, evaluation, and follow-up.
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