Menu
Banking Exchange Magazine Logo
Menu

Bank Fraud Case Exposed by Unusual Source

Six people were arrested last week of bank fraud in Jacksonville, Florida

  • |
  • Written by  Banking Exchange staff
  • |
  • Comments:   DISQUS_COMMENTS
Bank Fraud Case Exposed by Unusual Source

Six people were arrested last week of bank fraud in Jacksonville, Florida. The charges included credit card fraud and bank fraud where the suspects were actually able to produce bank cards without stealing the physical card. One of the suspects learned how to use an encoder in order to make counterfeits. The bust took place in a hotel in Jacksonville. 

The fraud was exposed in an usual way for cases involving bank fraud. Rather than an alert being generated by unusual activity on banking clients’ accounts, a local bar tender noticed an unusual amount of cards being pulled out to be used to buy alcohol, a local newspaper reported. The bartender called the police and the police came and arrested the suspects. 

The Secret Service is now looking into how the crime took place. The perpetrators face serious charges that are at a felony level. The encoding device allowed for false bank cards and credit cards to be made by copying the magnetic strip on the back of credit cards and even licenses. The encoder that was in one of the suspect’s possession is illegal for individuals to own and operate. 

To prevent such activity, banks should not rely on intuitive bartenders. Experts recommend to consumers to consistently monitor their bank records, and banks should recommend the same to its customers. Additionally, any devices that a bank may own should be monitored closely to avoid unlawful use or theft from an employee. To pull off a crime such as this takes a surprisingly low level of sophistication. Banks can help their customers monitor their accounts by emails linking them to account activity on a regular basis. 

Banks continue to face challenges on a high level in terms of cyber attacks, but this case also proves that even at a basic level banks need to keep careful watch to make sure there is nothing unusual happening across its business units, and also any functions that they might outsource such as the physical making of bank cards and credit cards through the banks are being handled by companies that are taking precautions to help prevent this type of activity. 

back to top

Sections

About Us

Connect With Us

Resources

Webinar: From KYC to IDV

How three leading banks are utilizing cutting-edge
digital tools to onboard, win, and wow customers

Time/Date: June 23, 2021 11:00 a.m. ET

Digital adoption, already moving at warp speed, accelerated seven years into the future during the COVID-19 pandemic. As the number of bank branches continues to fall, with at least one study predicting all branches will disappear by 2034 (Fox Business) and foot traffic declining (Vox), today’s most innovative banks are charting a new, digital-first path to win over customers while increasing security, meeting KYC compliance requirements, and winning customers to drive revenue.

In this webinar, you’ll hear from John Baird, Founder & CEO of Vouched, Tyler Crawford, COO of Bankers Healthcare Group, Anand Sathiyamurthy, CPO of Flagstar Bank and Daniel Sheehan, Chairman & CEO of Professional Bank as they describe their vision for digital transformation and how customer expectations are changing to digital first. They’ll also explore how fostering an innovation mindset creates new ways to tackle complex KYC problems and allows them to quickly compete in new markets and win customers.

REGISTER NOW!

This webinar is brought to you by:
Vouched Logo