Banking Fraud

Detecting and Deterring Bank Fraud and Corruption

Banks today face increasing pressure to implement robust fraud detection, prevention, and response efforts with a strong emphasis on maintaining the institutions’ safety and soundness. There can be serious financial consequences for banks that fail to maintain adequate systems to detect weaknesses such as:

  • Cybersecurity threats including identify theft and account takeover fraud
  • Third-party risks involving customers, suppliers, or other institutions with which banks have relationships
  • Transactional risk associated with fraud and anti-corruption

How Crowe Horwath LLP Can Help

Financial institutions of all sizes rely on Crowe to help identify, address, and monitor ongoing fraud concerns. In addition to highly specialized risk assessment and program assessment solutions, Crowe offers extensive fraud analytics capabilities to help with the implementation, validation, and tuning of fraud detection and response systems across three broad areas:

  • Crowe Program Assessment Roadmap (Crowe PAR) – The Crowe PAR tool helps financial institutions clearly identify current model risk management capabilities and prioritize future enhancements.
  • Risk Assessment – Crowe offers a comprehensive risk assessment methodology to identify risk categories through a detailed data analysis incorporating a review of geographic, product and service, and customer risks specific to each institution. Based on the research, Crowe creates an impact analysis to quantify risk levels and the related controls. The process also includes monitoring effectiveness to measure the quality of risk management actions.
  • System Implementation – Crowe offers ongoing support in the design, development, and implementation of transaction monitoring systems as well as system assessment and enhancement engagements and pre- and post-implementation tuning.
  • Model Calibration – Using quantitative analysis, prescriptive methodologies, and well-defined change control procedures, Crowe professionals help institutions tune and optimize models and provide documentary evidence to demonstrate to regulators and auditors that risks are being monitored at appropriate levels.
  • Risk assessments to identify potential weaknesses and improvement opportunities involving financial statement fraud, asset misappropriation, and other forms of internal fraud
  • Forensic accounting, litigation support and expert witness testimony, governance, risk management, and internal audit services
  • Support for compliance with the growing array of anti-corruption laws and regulations such as the Foreign Corrupt Practices Act and various other anti-bribery and corruption statutes

Many institutions also rely on Crowe to help manage their regulatory compliance efforts through:

Crowe fraud specialists help banks address the full scope of ethics policies and practices, including the design of internal controls, response management, and monitoring systems.