AML CHALLENGES
Perpetrators of insider fraud have been categorized in studies as having organizational or
individual relationships. Typically, insiders
with organizational relationships hold nontechnical positions but have authorized
access to systems for their jobs. They are
after financial gain and will usually commit
the crime while at the work location.
Insiders with technical or technical-related
positions have individual relationships.
Consultants, contractors and trusted third
parties are included in this category because
they can use their technical knowledge to
cause damage to the institution. Insiders with
individual relationships typically commit
sabotage or steal intellectual property (client
databases, proprietary software code, etc.).
Cases of sabotage usually point to technically proficient former employees who use
unauthorized, remote access outside of
normal working hours while IP theft usually
takes place during normal working hours by
current employees with authorized access.
Institutions with more effective awareness
programs support a broader view of Know
Your Employee (KYE). These institutions
have greater insight into crimes committed
by those with organizational versus individual relationships.
Alarming statistics
In its “2010 Report To The Nations On
Occupational Fraud And Abuse,” the
Association of Certified Fraud Examiners
(ACFE) compiled data from approximately
2,000 worldwide fraud cases that occurred
between January 2008 and December 2009.
The study revealed that the most commonly
victimized sectors were banking/financial
services, ma