Con-Vey : A survey on cons

Highlights of the first annual survey published by Indiaforensic Research Foundation. This study was carried out in the period of August'2006 and February'2007. This is the first independent and privately funded study carried out in India on the banking sector frauds.400 participants contributed their valuable views on this subject

4    Total fraud loss to Indian banks in year 2005-06 was Rs.1381 crores according to the Report published by Reserve Bank of India

4    Existence of the internal controls is still the methodology in India to catch the frauds

4    Collusion of the borrowers and the employees is the biggest cause of the bank frauds

4    At least Rs.690 crores worth of frauds are known to the banks but are not reported to various authorities for reasons like unclear definition of word frauds, damage to the bank’s image etc.

4    Technology related frauds like (ATM Card, Debit card, Credit card) are expected to be going un-exposed on the vast proportion.

4    Estimated minimum loss to the banking industry because of the unknown frauds could be more than Rs.828 crores.

4    Total impact of frauds on banking revenues = 1.7% of the total consolidated revenues of the banks are lost to frauds.

4    Money laundering is considered to be the risk of frauds in future

4    Educating the bank employees is the most effective way to prevent the bank frauds.