Financial Institution Fraud

Registration & Fees

Registration Fee:
ACFE Members: $655
Non-Members: $805
Early Registration Deadline: January 30, 2025
Register by the Early Registration Deadline to SAVE $125!

Course Outline

Day 1

• 8:00 – 9:20 a.m. Overview of Financial Institution Fraud

  In this overview, attendees will receive an introduction to the landscape of fraud in financial institutions, exploring various types of fraudulent activities prevalent in the banking and finance sectors. This overview will provide an understanding of the motives behind fraud, the methods used by perpetrators, and the impact on institutions and stakeholders. Throughout, the role of internal controls in detecting and preventing fraud, as well as the potential threat posed by corrupt insiders, is highlighted to underscore the importance of robust risk management strategies.

• 9:35 – 10:55 a.m. Fraud Risk Management Frameworks

  Fraud risk management frameworks are critical to how financial institutions oversee exposure, loss, recovery, and resilience. This section examines the essential components of effective fraud risk management frameworks within financial institutions. Learners will explore risk assessment methodologies, mitigation strategies, and monitoring mechanisms to detect and prevent fraud. This course component pays special attention to the role of internal controls in mitigating fraud risks and the necessity of fostering a culture of compliance and integrity throughout the financial institution.

• 11:10 a.m. – 12:30 p.m. Identity Theft

  Identity theft is a constantly evolving threat and is on the rise. This session will explore the various forms of identity theft, including synthetic identity fraud and account takeover schemes, and its implications for financial institutions and their customers. This section will also review internal controls such as identity verification procedures and transaction monitoring systems as critical tools in detecting and preventing identity theft, and highlight the potential threat of insiders exploiting access to personal information..

• 12:30 – 1:30 p.m. Lunch

  Lunch Break

• 1:30 – 2:50 p.m. Unethical and Predatory Sales Practices

  If financial institution employees can’t sell, they can’t earn. This creates an inherent conflict between making money and aligning to compliance requirements. This section examines the ethical challenges surrounding sales practices within financial institutions, including cases of misrepresentation, coercion, and exploitation of vulnerable customers. Participants will also learn about regulatory requirements and industry standards aimed at curbing unethical behavior.

• 3:05 – 4:25 p.m. Lending Fraud

  The nuances of lending fraud make it a particularly challenging crime to detect. In this section, participants explore the complexities of lending fraud, including fraudulent loan applications, income misrepresentation, and collateral manipulation. The session emphasizes the importance of robust underwriting processes, documentation standards, and due diligence in mitigating lending fraud risks. The session will also review loan origination and escalation practices aimed at deterring both internal and external fraud.

Day 2

• 8:00 – 9:20 a.m. Insider Abuse and Self-Dealing

  Financial institution employees have access to legally protected customer data, private information, and trade secrets, which compounds the risks of fraudulent behavior. This section delves into the unique threats posed by insiders, such as employees and executives, who exploit their positions for personal gain. Participants will learn about various forms of insider abuse, such as embezzlement, insider trading, and self-dealing transactions. This session emphasizes the critical role of internal controls in detecting and preventing insider abuse, as well as the importance of fostering a culture of integrity and ethical conduct to mitigate the risk of corrupt insiders.

• 9:35 – 10:55 a.m. Cybercrime Against Financial Institutions

  Cybercrime continues to evolve, as do advanced persistent threats. This section will walk through the ever-changing landscape of cyber threats targeting financial institutions, including phishing attacks, ransomware, and data breaches. The session covers best practices for cybersecurity risk management, incident response, and regulatory compliance. Internal controls such as access controls, encryption protocols, and employee training are also highlighted as crucial defenses against insiders facilitating or exploiting cyberattacks.

• 11:10 a.m. – 12:30 p.m. Elder Financial Exploitation

  Elder financial exploitation is a particularly troubling crime in that it often entails a litany of abuses and exploited trusts. Costing at-risk individuals billions each year, this section will focus on the unique vulnerabilities of elderly customers to financial exploitation and abuse. Participants will learn about common tactics used by fraudsters to exploit at-risk individuals, such as fraudulent investment schemes and caregiver exploitation. Internal controls such as enhanced due diligence procedures and reporting mechanisms are emphasized as essential tools in detecting and preventing elder financial exploitation.

• 12:30 – 1:30 p.m. Lunch

  Lunch Break

• 1:30 – 2:50 p.m. Investment Fraud

  Investment fraud and Ponzi schemes are possibly as old as currency itself. Participants will learn about the frauds that target both individual investors and institutional clients, such as Ponzi schemes, pump-and-dump scams, and other investment schemes. The role of conducting thorough due diligence on investment opportunities, monitoring investment activities, and detecting red flags is emphasized, along with the potential risk of insiders colluding with external fraudsters to perpetrate investment frauds.

• 3:05 – 4:25 p.m. Money Laundering

  Money laundering represents trillions in illicit funds moving through the global financial system annually. This section examines the complex schemes used by criminals to launder illicit funds through financial institutions, including structuring transactions, trade-based money laundering, and virtual currency schemes. In this segment, attendees will learn about regulatory requirements and industry best practices for anti-money laundering (AML) compliance. The role of internal controls such as customer due diligence procedures, transaction monitoring systems, and suspicious activity reporting mechanisms will be a focus. The session will also address potential complicity of corrupt insiders in facilitating money laundering activities.

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