A Study on Banking Frauds Identification and Prevention

Abstract

Bank fraud is utmost determined questions for monetary associations, whose clients face and constitute a severe risk to altogether involved parties. Fraud can be primarily caused by flawed incentive mechanisms for employees due to a decentralized lack of high-level management oversight. Conspiracy with emoloyees, business debtors and third-party agents.; weak controlstructure; lack of proper tools and know-hows in place to detect early warning signals of a scam; lack of awareness of bank employees and clients; and lack of coordination among different banks in India and abroad. Various system flaws and the evolution of legal reporting methods were thought to be some of the primary causes of fraud and non-performing assets. The banking industry is also implementing measures including tightening bank regulations and control, bolstering financial associations in line with the best performance and customer service in the world, and utilizing the newest technology for fraud detection. It contributes to lower morale.