Employees Pose Significant Risks to Financial Institutions

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Blanket bond

Blanket bond insurance covers specific risks facing financial institutions. Employees pose a significant threat since they have access to account information, money, and personal identification information. The most common risks include forgery, fraud and theft.

Forgery

Money orders, checks, drafts, and bills can be forged or otherwise fraudulently altered by an employee. These can be hard to detect because of the employee’s close association with the pieces of paper and accounts.

Fraud

Wire fraud can happen as easily as the change of a single digit on an account deposit. While a federal crime, it can take weeks to months to detect when an employee inside the bank is perpetuating the crime. As referenced on www.fgib.com, an employee’s dishonest act can cause a loss of physical property including securities and money. This is an additional concern for banks in addition to threats from outside the financial institution.

Theft

With access to tons of personal and financial information, an employee can take that information and steal it. Taking someone’s identity is a federal crime but is on the rise. How the bank handles the customer’s information in-house is not always the same, but it is a form of identity nevertheless.

Protect your financial institution from the risks posed by employees with blanket bond insurance. The comprehensive policy protects against these common risks along with ransoms, extortions, damages, and losses.

This post was written by , posted on November 1, 2019 Friday at 11:30 am