Internal fraud in financial institutions appears to be a growing problem. There have been a number of cases in which individuals working for financial services firms have been coerced into providing information on customers to outsiders who have then used the information to commit fraud. Alternatively the fraud may be initiated by staff themselves and there have been a number of well publicised instances of this in recent months.
Cases such as these highlight the importance of firms ensuring that they have adequate checks in place as part of their recruitment processes and also have systems to discover potentially suspicious activity on the part of their employees.
