Financial
Institution Fraud - Fiscal 2003
The
Federal Bureau of Investigation (FBI) continues to work to protect our nation's
financial system. During fiscal year (FY) 2003, FBI investigations in the financial
institution fraud arena resulted in over 2,000 federal convictions and over 2,000
pre-trial diversions. The figures come from the FBI's annual report on Financial
Institution Fraud and Failure.
The
FBI's Criminal Investigative Division (CID), Financial Crimes Section, prepares
the report each year. Grant Ashley, Assistant Director of the CID, said, "The
FBI's mission in the area of financial institution fraud is to identify, target,
disrupt and dismantle criminal organizations and individual operations engaged
in fraud schemes which target our nation's financial institutions."
The
FBI investigates financial institution fraud (FIF) in several areas:
*
Financial Institution Failure
* Insider Fraud
* Identify Theft
* Check
Fraud
* Counterfeit Negotiable Instruments
* Check Kiting
* Mortgage
and Loan Fraud
In
addition, FIF investigations related to emerging technologies and computer-related
banking are taking on added significance among the nation's financial institutions.
In the past five years, there have been more than 12,800 convictions on various
charges of felonies, misdemeanors and pre-trial diversions. This includes both
employees and non-employees of financial institutions.
During
FY 2003, FBI investigations resulted in $3.8 billion in restitution orders and
$35.6 million in fines being handed down to subjects in financial institution
fraud cases. In addition, during the same time period, the FBI seized $7.7 million
in assets, forfeited $3.5 million and posted recoveries of $15.1 million in financial
institution fraud matters.
Since
1996, the FBI received 268,536 Suspicious Activity Reports (SARs) for criminal
activity related to the crimes previously listed. These fraudulent activities
accounted for
47 percent of the 569,294 SARs filed by U.S. financial institutions
(excluding Bank Secrecy Act violations), and equaled approximately $8 billion
in loses.
Employees
of financial institutions are asked to be aware of any unusual financial activity.
To report fraudulent activity or scams, contact the nearest FBI office or police
department.
The
Financial Institution Fraud and Failure Report is available on the FBI's Internet
site, http://www.fbi.gov.