How monies are swindled from some bank accounts

Monies are swindled from some banks accounts but the police are unable to take any action against the culprits because the transaction looks hundred percent genuine.

This become possible because suddenly people come with lot of money to open up bank accounts throughout the world but according to normally accepted banking procedure, in some countries, they have to be introduced by a customer. New comer  may very often not get a customer to give the introduction but the bank never let them go elsewhere and they provide a customer who is prepared to give the necessary  introduction unknowing who the party is. No genuine customer would give the introduction to a unknown third party just because bank tells him. That means the bank  gets a fraud to do the introduction.

Often this fraud  or rather old customer of the bank who is to do the introduction,  is man who is quite adept at filling up forms in English and  good talker. The fraud observes very carefully while the person who wanted to open the account, filling  the form who normally  takes unusual long time to do so however much he was  proficient in English; And doubts also arise as to what answer he should give to a particular question. At this stage, the fraud barges in to help filling up the form, commencing it by taking  a new form and filling  it up very quickly doing absolute professional job. The new account holder has only got to sign up the form and the fraud  also signs up giving the introduction. Then the money is deposited in the usual fashion and the new customer would happily go away becoming good friend of the fraud, at least after a cup of tea to thank the fraud for his outgoing  helpful nature

Then comes the second stage. If the customer has lot of money, the fraud in connivance with the bank officials approach the bank on a subsequent day little later than the usual banking time and fill up the withdrawal form. By this time the fraud is very well acquainted with the signature of the new customer with the help of the bank officials. So, without difficulty  he fill up the withdrawal slip and set the signature which he had practiced  at home, with the sample signature  provided by the bank officials a few days earlier, possibly on the day of new comer opening up the account.

Very often, the fraud or the bank do not have the particular  pass book to commit the fraud. So the fraud had  to approach the branch manager for formality sake and tell him that he forgot to bring the pass book and that he would definitely bring it on the following day. Then he plead with him to allow him the withdrawal because the money is urgently needed. All this is nothing but formality and everybody is in the game. Then the bank manager would ask him to make that request in writing which the fraud would immediately comply with. Thereafter, the manager would in writing instruct the relevant bank official to verify not only his signature but also handwriting  with the original forms and if satisfied allow the withdrawal. This formality was only an extra precaution if anything goes amiss.  Then the fraud would withdraw the money and thereafter keeping his portion and the rest would be handed over to an agreed  upon bank official who divides that with the bank officials who are in the know of the game, amounts being dependent upon their original understanding based upon the degree of involvement. 

One fine day,  when the genuine customer comes to withdraw or deposit more money for which he has to hand over the pass book. Then the bank would make necessary entries inclusive of the withdrawals made by the fraud in the pass book and give it back , When the genuine customer notices  that large amount of money from his account being withdrawn of which, he had no connection, he would immediately complain that to the bank manager who would order an immediate inquiry on to the charge again for the sake of formality and then naturally bank staffers would be exonerated because at that prima facie stage everything seems all right and new customer .looks to have made a false complaint.

 The next step for the customer is to approach the police.  Then to the police, bank would show the writings of the withdrawal slip and his original writing on the introductory forms to open up an account and the police would find both to be definitely matching free of  forgery,

 There could also be another  customer  who would give false evidence that he saw the particular customer withdrawing the money and going away on some previous day. Then the police, being convinced of the integrity of the bank, would warn the new customer not to make such false complaints any more in future and close up the case.  

There were reported cases of some Indians going abroad and opening up accounts depositing some 10,000 US Dollars or so,  finding later that all those monies are withdrawn. The foregoing is possibly the method adopted by the bank officials concerned to swindle the money.

One step forward

Bank officials could go one step forward and replace  first registration forms  of few others too with those filled by a fraud of course with  the same signature practiced by him as explained earlier and withdraw funds. This is only a

possibility.

 Hence to avoid swindling money from savings accounts, requirement of  old customer introducing a new one has to be immediately done away with .  In lot of countries, the practice of introduction of new customer by a old one is not there in respect of savings accounts and that could easily be adopted by India and such countries where this requirement  in force.