Risk – Page 2 – The Alacermatrix Group

Bank Fraud: More Common Than You Think – Medium

Posted on June 20, 2016 - 8:26 pm by Reid Wegley

When you think of financial fraud, you might envision money laundering activities conducted by members of organized crime syndicates. Or you might think of how a stolen identity helped thieves take your money or leverage your credit cards. In truth, the laws intended to help financial institutions thwart financial fraud are broad enough to cover these acts and much more involving everyday criminals — some who are not so smart, and some who are so sophisticated that it takes time to bring them down.

Last month, a used car dealer in Florida pled guilty to bank fraud for a check kiting scheme that defrauded an unnamed financial institution of over $1 million. The crime happened in 2011, and I’m willing to bet that the bank’s Know Your Customer (KYC) policies and its internal processes for approving check drafts against uncollected funds have since been tightened.

Also this past month, a woman who embezzled money in 2014 from her employer was convicted. . . to read the rest of the article, please click here.

Financial Risk Management is a Global Issue – Medium

Posted on June 20, 2016 - 7:25 pm by Reid Wegley

The story unfolding in Poland, with politicians running electoral campaigns based on promises to curb bank profits, could have a profound effect on other countries, depending on the outcome.

We casually talk about the global economy, and how one venture outside of our borders can have a dramatic effect on our financial health. The story began during the financial crisis of 2008, when Polish banks were largely insulated from the global recession due to their strong fiscal management policies and the financial management tools offered to customers. At that time, many Poles took advantage of the Polish currency’s strength (zloty) against the Swiss franc and financed mortgages in the Swiss currency Today, that balance is reversed; the Swiss central bank abandoned caps on the franc’s value earlier this year. As a result, the franc became stronger, with the move affecting more than half a million Poles who now find themselves paying much more for their mortgages. To read the rest of this article on Medium.com, please click here.