They are directly involved in 18% financial frauds, while they committed 40% of the crime in collusion with IT professionals and in 9% of the cases, bankers are linked to a group comprising IT professional and others
Bankers are involved, either directly or indirectly, in 67% financial frauds by using Alternative Delivery Channels (ADCs), according to a latest study of the Bangladesh Institute of Bank Management (BIBM).
A four-member team, headed by BIBM Associate Professor Md Mahbubur Rahman Alam, conducted the study analysing 50 financial fraud cases involving use of ADCs of the banks concerned.
According to the study, bankers are directly involved in 18% financial frauds and in collusion with IT professionals 40% of the crime, while in 9% of the cases, bankers are linked to a group comprising IT professionals and others.
The ADCs used in Bangladeshi banks are: Mobile Financial Service (MFS), Automated Teller Machine (ATM) banking, agent banking, internet banking, Point of Sale Terminal (POST) and call centre.
Among the technology-based frauds in ADCs, 43% cases occurred through the use of ATM and plastic cards while mobile banking is accountable for 25% incidents, ACPs and EFT for 15%, internet banking for 12%, banking application software for 3% and SWIFT and others for 2% of the frauds.
The research paper was presented at a workshop held at the BIBM auditorium in Dhaka yesterday, with BIBM Director General Dr Toufic Ahmad Choudhury in the chair.
He said: “The ADCs are playing an important role in the banking system, but misuse of these systems might create a disaster. Bankers have to be transparent and honest in this regard as they are the vanguard of the system.”
Bangladesh Bank Deputy Governor Abu Hena Mohd Razee Hassan attended the event as the chief guest. BIBM supernumerary professors Helal Ahmed Chowdhury and Md Yasin Ali and Managing Director of Bank Asia Limited Md Arfan Ali, among others, addressed the event.tor of Bank Asia Limited Md Arfan Ali, among others, addressed.