The fraudster doesn’t wear a mask or hack in from outside. The fraudster has the key to enter the system (the login password), a designation, and years of institutional trust.
The core banking solution (CBS) has digitised every branch. It has also handed the insider an invisible weapon to attack – to debit accounts, backdate entries, park funds in suspense accounts (a temporary holding place used to record incoming or outgoing funds that cannot be immediately matched), activate dormant accounts of customers and move money to relatives or mule accounts.
The fraudster takes advantage of late generation of activity reports and the lack of staff strength to scrutinise entries immediately after the generation of such reports. It’s not easy to go through the labyrinth of data, manually analyse and detect the loss.
business-standard.