What common occurrence of fraud is related to bank employees?

Providing copies of checks to criminals is a common fraud scenario involving bank employees. This type of fraud typically occurs when a bank employee takes advantage of their access to sensitive financial information. By providing copies of checks, these employees can enable criminals to commit further fraudulent acts, such as forging signatures or creating counterfeit checks.

This situation highlights the importance of stringent controls and oversight within banking institutions to prevent employees from misusing their access to confidential information. The emphasis on protecting customer data aligns with best practices in risk management within financial services, where trust and security are paramount.

While embezzling funds, creating fake invoices, and misappropriating customer payments are indeed serious forms of fraud, they are more typically associated with roles outside of banking operations or occur through different methods. For example, embezzlement often involves diverting funds for personal gain, while creating fake invoices or misappropriating customer payments relates to fraudulent activities within accounts payable or receivable rather than direct banking operations.