Anatomy of Bank Frauds - Preventive Measures

Abstract

Technology has helped us to bank without going to the branch, during working hours, holidays, etc. However, it has resulted in a new type of fraud called Cyber Fraud. Here are some ways to preven them. Banks are institutions which deal with customers' (public) funds in the form of Deposits. Deposits constitute the main source of funds for Banks. Banks use these funds for lending to needy people and also invest in securities (Statutory Liquidity Ratio - SLR purposes and other purposes.). Banks earn profits by offering lower interest to depositors and charging higher rates to borrowers.