FINANCE,INSURANCE,BANKS AND THE STOCK EXCHANGE

The relationship between the banking

system in Romania and bank fraud

Conisteanu Garofita
Anul I ID Finante, Asigurari, Banci si Burse de Valori

The relationship between the banking system in Romania and the bank fraud

The internal fraud is one of the most complicated problems that could not be resolved by
the Romanian companies. The good part is that, once with the crises, the companies have
managed much better their finance, and the frauds have decreased in number. The less happy part
is that the criminals have refined, and now frauds are hard to discover. No company is exempt
from the risk of being stolen by its own employees; however, none are more at risk of fraud as
banking organizations. Here, both the frequency of cases and amounts in the middle are often
much higher than in other areas.
There are still plenty of ways, surprisingly simple to steal the money from the bank. One
of the methods is grating loans to companies based on various forgeries in documents-from
distorting financial ratios at declaration of non-existent goods.
From my opinion I think that its about teamwork, the bank officers is collaborating with
debtors, a situation found in other cases: the officers stop a commission of 10% of the amount
borrowed. Later, as agreed from the beginning, the debtors pay rates for three or four month then
disappears.
How to stole your company simple and efficiently ,is another way to commit a fraud, is
very frequently used in the banking system fraud : the employees identify inactive accounts, in
which the owner has not conducted operations for several months, and , the idea that it is
unlikely to use their account in the near future, they transfer small amounts from many accounts
in their own account, and established a deposit related interest this created, then collects the
money and interest returns in the account.
From my point of view the reason why the financial companies avoid the collaboration
with the authorities is simple: they need their image so thats why they prefer to resolve this kind
of problems between them, inside the company, because they work by attracting capital, with
peoples money, and coverage of such fraud would be for them a rare glimpse kick- in the final
who will deposit their economics in such banks?

The management makes a calculation, how great the damage compared to how long and
costly will be to send the case in the court of law. Often it is decided that the second option is not
economical, so that the culprits escaped dismissal without the obligation to refund the damage,
sometimes in rare cases the director offer money for they silence outside the company.
The best solution is to prevent it, even if the companies executives make an appeal to the
authorities, the culprits doesnt suffer so much, even if the punishment for this action is paid with
jail, in our country nobody get there, in most of the cases the criminals escape only with
suspension.
So what solutions exist for the employers who want to protect their business instinct of
enrichment of employees?
The companies need to focus on preventing crimes, not on their investigation, when its
already too late. And prevention means implementing antifraud systems, hierarchical levels
securing IT systems, the concept of classified information and secrets, secure access into certain
quarters. Yet when it comes to prevention, nothing is more effective than the whistleblowing
procedure. The employees have a number and an e-mail address where they can report all the
suspect activities of their colleagues, under the protection of the anonymity.
This remain the most efficient way to discover the frauds.