Bank Fraud Explained

 Posted on March 13, 2017 in Fraud

Accusations of bank fraud elicit ideations of a masked individual demanding cash from a banking institution. However, although the accusations imply the illegal procurement of money, one is not the same as the other. Bank robbery is a blatant, public act in which an individual immediately announces intent to obtain money illegally. Bank fraud is the secretive version of taking money, often with the intent of getting away or perhaps never being discovered. A wide variety of actions results in charges of bank fraud. Federal charges such as bank fraud hold harsh criminal punishments if convicted.

Type of Bank Fraud

There is a wide variety of methods used to defraud a bank of their money. A few are more common than others due to the ease in which they occur. The more complex the behavior is, the more premeditation is necessary and therefore the harsher the penalty if found guilty. A few bank fraud practices include:

• Forgery: The creation of invalid banknotes, signatures, or documents. This is often done through modification of the original form, such as altering identification information on a check. Forgery includes signing a document to receive money impersonating the intended receiver.
• Fraudulent loans: Loan applications are legal documents, in which, it is illegal if any portion of the document is falsified to obtain money that otherwise would be denied. This category also includes using someone else’s identity or intentionally taking out the loan and filing for bankruptcy immediately.
• Internet fraud: Creating an imposter website with the intent of obtaining deposits from unsuspecting consumers.
• Stolen checks: Gaining access to someone else’s checks and depositing them into a fake account or filling out a blank check and forging a signature to send money to an unauthorized account.
• Wire transfer fraud: Sending money through the use of wire transfer and canceling the transaction after someone has already withdrawn the money, leaving the banking institution short.

Maintain Your Freedom

Defrauding a banking institution is a serious charge. To be found guilty of federal bank fraud, the institution must be insured by the Federal Deposit Insurance Corporation (FDIC) and the prosecution must prove our client knowingly and intentionally broke the law. Our goal is to create enough doubt to have the case dismissed or the charges lessened. If you are interested in discussing your experience with a proven Chicago federal fraud defense attorney, contact the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney today at 312-629-0669 to schedule your free and confidential initial consultation.

Sources:

https://www.fdic.gov/consumers/consumer/information/fdiciorn.html

http://www.frbsf.org/education/publications/doctor-econ/2006/november/commercial-banks-regulation/