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Criminal Probes, Damage Control Come Before SARs in Insider Abuse Cases
By Matt Squire
printBanks confound criminal and civil investigations and expose themselves to potential liability when they are slow to report suspected cases of insider abuse directly to law enforcement, say former federal agents specializing in bank security. When financial institutions suspect an employee of fraud or abuse – such as forging documents to access customer accounts or using customer information to create fake accounts – often their first instinct is to simply file a suspicious activity report with regulators and move to the next issue. But a SAR should be filed only after the financial institution has contacted law enforcement directly, experts...
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