The FBI is committed to pursuing the stability of its banking system and aggressive attacks on people who jeopardize the security of public assets and personal information. In financial institution (FIF) fraud investigations, the agency continues to focus on organized crime groups involved in patterns of behavior that cut banks and lead to losses. If the FIF scheme involves a single party, the FBI will prioritize cases with significant losses or significant impacts on the community.
Financial Institution Fraud (FIF)
Financial Institution (FIF) fraud is a type of criminal scheme targeting traditional retail banks, credit unions, and other federal insurance financial institutions. Many FIF schemes involve negotiating client accounts or personally identifiable information (PII). Theft of personal information is considered by both financial institutions and consumers. The FIF can be classified as external, if its creators have no connection to the victim institution, or internal, if the bank staff use their access to the accounts and systems, as well as what they know policy, to commit fraud. External FIF systems checked regularly include stolen or counterfeit checks, forgery of account holder, asset fraud (unauthorized use/misuse of debit card), credit card fraud, and corruption of lost email. Unfortunately, while technology provides more convenience and access to customers, it also creates opportunities for criminals.
Money laundering and misappropriation of funds are the two most common internal FIF systems in FBI investigations. And if fraud runs its course, it could lead to the complete failure of a secured federal financial institution.
Mortgage fraud is a sub-category of FIF. It is a crime characterized by a separate material distortion, misrepresentation, or negligence related to a mortgage loan that is immediately guaranteed by the lender. Lies that affect a bank’s decision – such as approving a loan, receiving an initial payment, or accepting certain payment terms – are mortgage fraud. The FBI and other agencies investigating mortgage fraud, especially after the housing market crash, have expanded their definitions to include fraud against homeowners. There are two different areas of mortgage fraud – profit and housing fraud.
The FBI seeks to maximize the impact of mortgage and financial institution fraud as a collaboration. For instance, the Bureau operates financial crime forces in several field offices across the country that act as control multipliers to deal with major financial fraud. Comprised of federal, state, and local regulators and law enforcement agencies working together on a daily basis, these actions have been an effective way to pool valuable resources from participating organizations. The FBI also participates in formal and ad hoc inter-agency working groups that deal with FIF fraud and mortgages. These and working groups – made up of federal, state, and local regulators and law enforcement agencies across the country, along with private business to bring in banking security inspectors – meet regularly to brief on the division, conflict, and launch of joint investigations. Using the knowledge, expertise, and resources of various authorities and the private industry, the FBI and its partners can bring more fraudsters to justice.
Common mortgage fraud systems
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