Insider Fraud at CorTrust Bank
As much as 37% of fraud that effects business is committed by company insiders. The banking and financial services industry is no different. With detailed knowledge of customer accounts, security protocols and the ability to go largely undetected, insider bank fraud is a growing threat.
On December 7, CorTrust Bank employee, Gabe Outtrim pled guilty to insider bank fraud. The initial indictment alleged Outtrim, from November of 2015 through March of 2019, defrauded the bank.
After his guilty plea, the court ordered Outtrim to pay $144,051 in restitution. Sentencing is scheduled for March 15 of 2022 with the maximum penalty being 30 years in federal prison and a $1 million fine. Included are up to 5 years of supervised release.
Outtrim was accused of making two loans in the name of a bank customer (unknown) and using the money for his own personal use.
These types of insider bank crimes are on the rise. 48% of banks (as stated in a recent survey by Aite Group) say the number of insider frauds have increased, and 43% say the losses associated with these crimes have increased as well.
Unfortunately, without proper, cutting-edge security protocols, these frauds will continue an upward trend, and banks, credit unions and financial services institutions of all sizes, and their clients, will be victimized.
However, there are solutions that can help battle insider bank fraud.
Artificial intelligence technology, like that of custom Ai developer, ToolCASE, hopes to help banks and credit unions detect insider fraud live, before any funds are transferred, or loans granted to illicit accounts.
The ToolCASE suite of Ai tools have already helped banks and credit unions, nationwide, avert millions of dollars in losses. Its real-time technology is capable of detecting even the smallest anomalies in transactional data and loan application data, and alerts fraud teams immediately of discrepancies associated with fraud.
Dealing with unique and unprecedented challenges of modern banking requires unique and unprecedented fraud detection and prevention tools. ToolCASE offers an industry-best solution, at a remarkable ROI.
Read more about the CorTrust insider bank fraud, HERE
Or discover how well protected your institution could become with ToolCASE, HERE
