Links in “Financial Crime”

Study shows credit card fraud is highly pervasive, but banks top retailers in prevention, detection and resolution, indicating "inattention to factors that could help to lower" the overall incidence of card fraud on the part of retailers. [1/24]

According to a recent online CUNA survey, the Target data breach has already cost credit unions almost $30 million and this figure does not include fraud costs. The respondees reported an average cost so far of $5.10 per affected card. [1/22]

NCUA releases warning on “vishing” scheme that uses agency’s name in an attempt to obtain personal financial information. Like most such schemes, the automated call claims to be NCUA and seeks information from consumers regarding alleged compromised debit cards. Warning is good reminder for all FIs to keep consumers/members advised of such practices. [1/22]

Lawrence Wright was sentence to six years in federal prison for conspiracy to commit bank fraud, conspiracy to commit money laundering, bank fraud, mail fraud, aggravated identity theft, and making a false statement to a federally insured financial institution. Additionally, he has been ordered to pay restitution fees in excess of $3.7 million. [1/20]

Prosecutors have now charged five individuals, in addition to the former manager, in the fraud that resulted in the liquidation of the $15 million Taupa Lithuanian Credit Union. Former manager Spirikaitis is reported to have embezzled $4.2 million that he used to buy a lavish home, a luxury suite at the Cleveland Browns stadium, nine vehicles, and an arsenal of semi-automatic weapons and ammunition. [1/16]

The scheme of the California group, which included two attorneys, was to identify abandoned homes, file for adverse possession in court in order to obtain the titles, then resell or rent the homes. Scheme was uncovered when a homeowner sought an equity loan on a home she owned and found out that the deed holder was listed as one of the defendants. Five have been arrested in the scheme that involved 23 homes in nine counties. [1/16]

South Florida-based company faces expanded efforts and permanent ban for alleged mortgage relief scam resulting in largest FTC judgment to date against a purported mortgage assistance relief provider. [1/15]

A North Carolina bank ignores customer complaints about unauthorized withdrawals, a warning from an attorney general, and other red flags. The result? A $1.2 million settlement for allowing a third-party processor direct access to the Federal Reserve Bank to process debits against consumer accounts on behalf of fraudulent payday lenders, internet gambling organizations and an alleged Ponzi scheme. [1/10]

Failure to maintain an effective Anti-Money Laundering program and failure to file a Suspicious Activity Report played a role in facilitating Bernard Madoff's ponzi scheme, resulting in a $1.7 billion settlement between JPMorgan Chase and the government. [1/8]

FinCEN and OCC combine for $461 million in fines of JPMorgan Chase for willfully violating BSA by failing to report suspicious transactions arising out of Bernard L. Madoff’s decades-long, multi-billion dollar fraudulent investment scheme. Financial institutions could benefit from a consideration of the key weaknesses cited by regulators. [1/8]