default_mobilelogo

Misuse of banking system (Use of False Identification)

An individual involved in large-scale bank fraud created a range of false identification documents to open bank accounts and apply for personal loans and credit cards. The individual deposited the money received from the loans into a bank account. The bank statement received for the account was then used at another bank as proof of financial means to apply for further loans.

The offender initially opened savings accounts and credit cards with the loan funds, which were then deposited to another account after approval. Once the money was in the account, either the offender or one of two associates withdrew the funds as bank cheques (on the justification of buying a car or similar) made out to other false identities with false accounts and then deposited the cheque/s into these accounts. Funds were also withdrawn via ATMs or bank branches. The offender repeated this process using multiple false identities, fraudulently generating over US$908,000 in funds.

Indicators:

  • An individual or business client has multiple bank accounts with several institutions, but with no economic rationale for having them
  • Customer is known to be operating multiple accounts
  • Multiple bank cheques purchased by different individuals but payable to a common beneficiary
  • Payments by large third party cheques endorsed in favour of the customer
  • Use of false Identification Documentation