Ten years ago, I wrote an article on how banks could minimize their litigation risks. Unfortunately, many of the same schemes are present today as they were ten years ago, such as check fraud, check kiting, elder abuse, bookkeeper fraud, and construction loan fraud. Today, cybersecurity and other high-tech risks are consuming bankers' attention in order to reduce their operational and reputational risks. While these issues are important, here are a few of the low-tech ways in which banks can minimize their litigation risk.
Identity theft should be a concern to all because of its pervasiveness. One form of theft is the opening of a credit card account using a pre-approved credit card solicitation. You may have received one or more of these solicitations every day, if not every week. Sometimes, the same company will send more than one such solicitation. The credit card companies do this because they receive information from credit reporting agencies and those with acceptable credit scores are sent more attractive offers.
In the past few decades the proliferation of computer equipment has simplified the method of creating fraudulent documents. Desktop publishing is making it easy to create counterfeit documents from letters of credit to forged checks
Internal Revenue Code §165, as codified in Title 26 USC §165, is a door through which those who have suffered certain uncompensated casualty losses may recover as much as 35% of their losses, and you, as that person's investigator are the key to the door
While most legal professionals think of external hackers when they hear about information theft, that's often not the case. The more common culprit: someone with legitimate access to the information - i.e., insiders