Prevention of Fraud in the Banking Sector

Abstract

The author uses the conducted research to formulate suggestions on preventing fraud in the banking sector. The goal of the study is to develop practical recommendations on improving the existing system of preventing fraud and enhancing its effectiveness. Within organizational and managerial measures, it is recommended to improve the inter-agency cooperation between law enforcement bodies and banks and other credit organizations; to carry out a thorough selection, training and adaptation of employees for the financial-credit supervision bodies, as the usefulness of a well-trained bank employee is difficult to overestimate. Special attention is paid to the necessity of counteracting “leaks” of bank clients’ personal data. As technical measures make it possible to solve most problems of counteracting bank fraud, the systems capable of adaptation to the new fraud schemes should be designed and improved. Within criminal law measures, it is suggested that special crimes of Art. 159.1 and 159.3 of the Criminal Code of the Russian Federation should be excluded from criminal law, and liability for them should be transferred to the general crime of fraud. To improve the protection level for victims of bank fraud, it is recommended to conduct preventive work with persons characterized by age and role victimity; to raise the level of digital, financial and technical literacy of potential and actual victims in order to prevent repeat victimity; to provide information about new ways of committing crimes. It is stressed that both physical and juridical persons could be victims of bank fraud, so the specific features of the victim should be considered in the development of prevention measures. It is pointed out that active work in these directions is, according to the author, an important step towards effective identification and prevention of fraud in the banking sector.