Description
When it comes to fraud, crime does pay. Unscrupulous and fraudulent practices cost financial institutions billions of dollars each year. In fact, the Association of Certified Fraud Examiners reports that fraud and abuse cost typical US organizations 7% of revenues. This amounts to $994 billion dollars annually.
Employees in operations have access to a greater amount of information than front-line employees. That access can provide stronger insights into potential fraud and detection.
What Is Bank Fraud?
According to Wikipedia, bank fraud “is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution”.
Fraud comes in many shapes, including stealing checks, forgery, check fraud, identity theft, bank impersonation (posing as a financial institution in order to lure people into depositing funds), taking out fraudulent loans (taking out a loan, knowing that he or she will immediately file bankruptcy), and now, with the growth of the Internet, hacking.
Are Banks Required To Offer Fraud Protection?
Bank account fraud protection is addressed under Federal Reserve Regulation E, which requires banks and credit unions to provide reimbursement for certain fraud losses occurring through unauthorized electronic transfers. That said, the best way to prevent bank fraud is to complete fraud training as a loan support employee. (Formerly CFT Training)
Certificate includes the following courses:
Determining Your Role in Fraud Prevention
This course provides mortgage loan originators (MLOs) and mortgage operations personnel with a detailed look at mortgage fraud characteristics, the ways individuals or groups perpetrate fraud in a mortgage transaction, and strategies to detect and reduce mortgage fraud. This course presents an overview of mortgage fraud statistics in the United States, including prevalence, trends, and geographic risk indicators. Learners cover details of mortgage fraud characteristics, motivators, and common fraud schemes, and the red flags that may indicate the presence of mortgage fraud throughout the loan process, beginning at the point of application. This course explains the MLO’s role in fraud prevention, describes available tools that help combat fraud, and presents strategies for MLOs and operations personnel to protect themselves and their companies.
Mortgage Fraud and Ethical Behavior
Mortgage fraud costs lenders and consumers alike billions of dollars each year. These losses ultimately result in higher costs for potential homeowners and the need for tougher regulation and control over the industry to prevent further loss. Ethical principles are a vital part of avoiding fraud and ensuring that consumers are protected.
This course will review important information about mortgage fraud, as well as the importance of maintaining ethical principles in conducting loan origination activities.
Mortgage Fraud Detection, Reporting, and Prevention
Mortgage professionals thrive by generating mortgage loans for consumers. In their unique position, they require access to private, personal consumer information. Both the loan applicant and the mortgage professional have a vested interest in the outcome of a mortgage application. Unfortunately, this can lead to unethical behavior, and even fraud, by either or both parties to ensure the loan is approved and closed.
A mortgage professional can often detect and address issues of mortgage fraud with a thorough analysis of the loan file. An understanding of the many indicators of mortgage fraud will keep them alert to this possibility. Informed consumers are better equipped to avoid being victimized by fraud or predatory lending practices.
This course will review indicators of mortgage fraud and how this fraud may be attempted, detected, and penalized.
Is mortgage fraud really a problem? According to the 2023 Mortgage Fraud Report by CoreLogic, a leading provider of data and analytics for the mortgage industry, about 1 in 118 mortgage applications were estimated to contain fraud in the first quarter of 2026 (up from 1 in 138 in 2023).
Topics:
- Types of Mortgage Fraud
- Fraud Detection Techniques
- Mortgage Fraud and the Law
- Real World Case Studies
- Course Summary and Resources
Safeguarding Customer Information and Nonpublic Areas
This comprehensive course is designed for professionals in financial institutions who are responsible for protecting customer information and securing nonpublic areas. Participants will gain a deep understanding of the regulatory requirements, including the Gramm-Leach-Bliley Act (GLBA).
By the end of this course, you will be able to:
- Define Information Security.
- Describe how employees of financial institutions can help protect your customer from fraud while maintaining the security of their confidential information.
- Identify and summarize crimes of opportunity.
- Highlight the importance of access control.
- Explain how to safeguard your customers and properly dispose of confidential information.
- Define and describe Identity Theft and Red Flags.
- Give an explanation as to what Social Engineering is as well as the component of it.
- Help your customers protect themselves from Scams and Fraud.
Financial institutions are required to have written policies and procedures, regarding an Information Security Program. All employees have a direct impact on that program, and it is their responsibility to follow it. As an employee of a financial institution, you are a critical component when it comes to protecting your customers’ private information.