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.