Bank Frauds

Frauds means " Act of deceiving ilegally'in order to make money or obtain goods."Frauds involves misrepresentation, breach of trust, manipulation of books of accounts, encashment of stolen,Cheques, Drafts, Manager's Cheques and bills of exchange,wrongful handling of securities pledged to bank, embezzlement, theft, misappropriation of funds, cheating,shortages hypothecated stocks, irregularities, conversion of properties etc.Every bank can face this situation in one form or the other in times, so it has to strengthen its internal audit system for an early detection and prevention of the same. So Fraud is any dishonest act and behaviour by which one person gains or intends to gain advantage over another person. Fraud causes loss to the victim directly or indirectly.

Banks face fraud due to many internal weakness of its own.When the internal control system is weak,bank become vulnerable to frauds from the unscruplous staff .Dilution of effiency in mana-gerial staff or their involvement, also become prominent cause for fraud to take place from lower level's staff.Banking Frauds constitute a considerable percentage of white-collar offences being probed by the police. Unlike ordinary thefts and robberies, the amount misappropriated in these crimes runs into lakhs and crores of rupees. Bank fraud is a federal crime in many countries.

Hence, to avoide those sort of frauds, bank has to make preventive measure of it.Fo instants or example there should be proper investigation of borrowers and grant of credit in accordance with the borrower's requirement,frequent excess withdrals must be prevented ,officials mus be transferred at reasonable intervals to prevent creation of vasted interests,as well as operational procedures,unscrupulous parties, and rotation of duties are implemented to prevent it.The most great idea, CENTRAL BANK (NRB) should implement the rules over it.