[size=14pt]Dirty games bankers play[/size]

TOYOSI OGUNSEYE


The recent arrest of seven bankers by the Lagos State Police Command for allegedly stealing N75m from customers shows that some bankers will go to any length to steal depositors' funds. The techniques these bankers use when dipping hands into customers' accounts keep evolving as they churn out new methods frequently to perpetrate these unscrupulous acts. Of course, the customer is always at the receiving end. In this report, TOYOSI OGUNSEYE examines some of the dirty games bankers play.

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Adebayo, Oko







Key logging depositor's funds

When seven members of staff of Bank PHB were arrested for allegedly defrauding the bank of N75m, many people wondered how they did it. The police said that the suspects were able to hack into customers' accounts with a device called key logger.

A key logger, also known as an extractor, was allegedly used by the suspects to access the passwords of customers and other bank transactions illegally; and at their convenience, they withdrew huge sums from the accounts.

The kingpin of the syndicate was said to be one Ajayi Abayomi, who used to work with the bank. The spokesman of the police, Samuel Jinadu said, "Ajayi has an insider in the bank who he gives the key logger to. He also recruited some beneficiaries who opened accounts with the bank. When no one is noticing, the insider will insert the keg logger into the desktop of the staff and extract information from the desktops. They successfully withdrew N75m. The management of the bank noticed that a huge sum of money has been siphoned and then reported to the police."


Key logger

* This is the latest technology that aids financial spying. It is the process of noting the keys struck by a user from a keyboard, which is done in a very covert manner so that he is unaware that the information he is entering into the computer are recorded or monitored. It is often used to fetch sensitive information from people's computing sessions (for instance their online bank account passwords) and then later using the same information to fraudulently access such peoples' accounts and make unauthorized transactions. Installing a hardware key logger can be done inside the USB or PS/2 keyboard. Since the key logger is inside the equipment, it will be difficult or impossible to detect it since its appearance cannot be distinguished from other wirings.



Cloning customers' cheques

Imagine paying a cheque into the account of your customer. The cheque clears but the money finds its way into another person's account. When your customer does not see the money, he gives you a call and you sound so confident, assuring him that you have since deposited the cheque into his account.

Miffed by the persistent calls of the customer, you then approach the bank manager asking him why the cheque has not been cleared. The manager laughs and tells you that the bank has since paid the money to your customer. To buttress your point, you call your customer in the presence of the manager. To emphasise what he earlier said, the bank boss brings out a photocopy of the cheque and shows it to you.

You look at the cheque; close your eyes and open it repeatedly. You even put on your glasses to be sure that you are seeing what the manager is showing you. Shock, disbelief and bewilderment overwhelm you. Why? Even though it's the same cheque, your signature is on it; the amount is the same but the recipient has changed!

This scenario played itself out at Apapa branch of Unity Bank late last year. Policemen at the State Criminal Investigations Department arrested Alabi Adebayo, alleged key member of the syndicate that was reportedly cloning the cheques. The police also declared the bank's dispatch rider, Emmanuel Oko, wanted over the fraud.


Dry posting.

Last Wednesday, the EFCC arraigned one Mr. Henry Oronsanye before a Lagos High Court in Igbosere, on a 102-count charge bordering on fraud, diversion of funds and stealing the sum of N200m. Oronsanye, a former staff of the EGC Securities Limited, a subsidiary of Ecobank Plc, was alleged to have, sometime in 2008 while he was the officer in charge of posting of funds to shareholders' accounts at EGC, defrauded the bank.

The accused was first arrested following a petition by the bank. Following his arrest, investigations showed that Orosanye was involved in "dry posting," which is the term used for the fraudulent act of creating fictitious figures and posting them as funds into shareholders' or depositors' accounts, after which the money is diverted to private use.


Giving loans to ghost companies.


For giving loans to non-existent companies, a number of former bank managing directors have been sent to prison. This dirty game of giving huge sums of money to ghost entities for illegal and indecent transactions is not restricted to bank chiefs alone. A ghost company is a company without a soul. It is a company that serves as a vehicle for business transactions without itself having any significant assets or operations. Because of the fluidity of their operations, ghost companies are veritable vehicles for fraud and money laundering.

Not too long ago, the EFCC arrested a former bank manager with First City Monument Bank, in Katsina State, Mrs. Zainab Rufai Yusuf, for allegedly using fake accounts to fleece the bank of millions of naira. Yusuf allegedly opened 35 fake accounts, granted bogus loans, forged security documents, signed fake overdrafts, as well as issued dud cheques for fraudulent purposes.


Skimming ATM cards.


Not a few customers have been swindled through this method. Ironically, some of the victims whose monies were stolen through the Automated Teller Machine cards are non-users of the card. Take the case of Mr. Giafranco Falcioni, who gave a N4m cheque to someone and was told his Standard Chartered Bank account was already in the red.

He went to the bank to verify and from his account statement, it was discovered that a lot of withdrawals had been done on the account via the ATM. The customer, who was surprised as he had never used his ATM card, protested and the matter was reported to the Economic and Financial Crimes Commission.

At the end of the investigations, a former member of staff of the bank, Cassandra Olaleye, was arrested and prosecuted for the fraud.


Skimming machines

* They are used to clone credit cards. A skimmer reads and records the information stored in the magnetic strip behind your credit/debit card and works pretty much like the ordinary machines that help pay your bills. Once the informatio

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