Is Banking Fraud on the Rise due to Internal Collaboration?

There is a disturbing rate of fraudulent practices causing many bank customers countrywide to lose their hard-earned money, either by being robbed after withdrawing cash or through online transactions.

This is perilous, and one wonders how banking institutions can ensure they are ready to defend their businesses and their customers from criminal activities.

One must question how individuals get to know clients details or how fraudsters discover that an individual has withdrawn a large amount of money.

There are still ongoing unauthorised fraudulent payments, involving unauthorised transfers of funds from bank clients’ accounts to other accounts.

In recent incidents, a Tsumeb farmer lost nearly N$3 million, and a retired teacher in the Omusati region lost N$1.1 million. Pensioners or retirees are mostly the targets of this type of large-scale fraud.

Can there be a collaboration with staff of banking organisations in these fraudulent transactions, as some online users claim?

In a classic scam, you would have a middleman, and they would have a dark collaboration space where they coordinate their financial fraud or criminal activities.

The number of bank frauds has witnessed a significant year-on-year increase in recent years, and such frauds continue to soar.

People believe the reason for the surge is not only that criminals are becoming more sophisticated and organised across technology and messaging apps, where they can send encrypted messages and conceal their identities through anonymous and untraceable usernames, but also due to the assistance of some bank staff members.

These advances have given criminals the means to rob clients of their hard-earned money.

This has awakened customers to be more vigilant with their choice of banks, as in most cases, a particular bank institution tops the list when it comes to fraud.

Banking institutions should work towards fraud prevention methods and resolve disputes in a timely and proper manner.

Banks’ conspiracy of silence

These incidents raise serious concerns about the security measures in place, as well as the integrity of the banking system.

In some cases, it is evident some bank customers have lost huge sums in mysterious ways, probably to bank staff who connive with fraudsters to dupe people out of their savings.

Customers deserve transparency and accountability, yet many are left in the dark, unsure of how to protect their finances against potential internal threats.

I understand, it’s a competitive market, and no bank wants to be seen as having bad employees.

By the time there are reports of catching fraudsters in the bank, it’s not good for the bank, as some customers tend to feel their money is no longer safe with certain banks, and before you know it, they close their accounts.

The lack of accountability erodes trust between banks and their customers, leading to a cycle of dissatisfaction and potential loss of business.

As clients seek more secure alternatives, financial institutions must prioritise transparency and proactive measures to restore confidence in their services.

Banks must prioritise security thorough vetting processes and implement stricter oversight to ensure the integrity of their staff

• Leonard Kanime is a social commentator. He can be reached through [email protected].