Banking Fraud In China

Everyone would have been aware of the Banking fraud in China since it was a recent sensational news. In January of 2007, two company managers involved in the bank fraud of amount $482 million from the Bank of China were convicted in a Hong Kong district court of bank fraud spanning a decade. The individuals at the forefront of this case are a husband and wife who managed Ever Joint Properties and Yau Hip Trading respectively. For ages, the banking industry in China has been tarnished with corruption which has served to undermine the confidence of investors in the lending establishments. In addition, it also undermines the confidence of banking customers. There have also been several cases where individuals were jailed for accepting bribes.

The couple involved in this most recent fraud case were charged with conspiring with three managers from the Bank of China by embezzling and laundering money taken from the bank over a period of almost ten years. Prosecutor Charlotte Draycott stated the money was sent to the Ever Joint Properties company through mainland organizations who got loans from the Bank of China. Also, underground banks and direct lenders were also utilized in this fraud scheme. The judge who convicted the pair rejected their defense that they thought the money was legitimate.

They claimed that they thought the money was for a legitimate window company set up by the Kaiping branch of the bank for the purpose of conducting overseas business. The judge saw through this defense, and convicted not only the couple but three managers of siphoning millions of dollars to the property company. Two of the three managers fled to the United States in 2001 but are currently incarcerated in Las Vegas awaiting federal indictment on racketeering, visa fraud and money laundering charges.

The information currently known about banking fraud in China is a good thing because it alerts customers and bank officials to the potential dangers of banking in this country. Because of the high profile nature of this incident, bank officials are likely taking more advanced measures to prevent this type of bank fraud from happening again. Perhaps the conviction of the individuals in the Bank of China case will serve as a warning for other potential criminals considering bank fraud.

Online Banking News:

Ice IX Banking Trojan Steals Info That Enables Fraudsters to Hijack Phone Calls - CSO

V3.co.uk

Ice IX Banking Trojan Steals Info That Enables Fraudsters to Hijack Phone Calls
CSO
By Lucian Constantin February 02, 2012 EUR” IDG News Service EUR” New variants of the Ice IX online banking Trojan program are tricking victims into exposing their telephone account numbers so that fraudsters can divert post-transaction verification phone .
Financial malware targets online banking customers in the UK and USInquirer

all 25 news articles »

Hackers fool bank security system
Criminal hackers have found ways around new security devices used for online banking, the BBC has learned...

Ice IX Banking Trojan Steals Info That Enables Fraudsters to Hijack Phone Calls
New variants of the Ice IX online banking Trojan program are tricking victims into exposing their telephone account numbers so that fraudsters can divert...

Hackers outwit
Criminal hackers have found a way round the latest generation of..

Crisis Dents Deutsche
FRANKFURTEUR”Deutsche..

Business Wire - Trusteer Helps Huntington Bank Protect Customers from Cybercrime
February 1, 2012 -- Huntington Bank is offering Trusteer Rapport to its commercial and retail customers for free to protect against online bank account takeover by...

Dental Dog Day Afternoon: Toothless Woman Robs
A 49-year-old toothless Pennsylvania woman is in custody on charges of robbery, theft and terrorist threats, after she robbed a..

Nigerian 'kingpin' arrested in multi-crore online banking fraud - Times of India

Nigerian 'kingpin' arrested in multi-crore online banking fraud
Times of India
If he logs into his bank account online to check his balance, the racketeers get every detail, including the password. If the victim's account balance is lucrative then transfer the money to another account opened in a fictitious name.

and more »

Brazil-Focused Hackers Hit HSBC's Global Banking Sites - Wall Street Journal

Brazil-Focused Hackers Hit HSBC's Global Banking Sites
Wall Street Journal
A spokesman for HSBC in New York confirmed the bank experienced "technical difficulties" with some of its websites, but said the issues are now resolved. The issue was part of the "unauthorized Internet activity" in Brazil that affected the North .

and more »

Personal Capital Enters OBR Hall of Fame
SAN FRANCISCO, CA-- - Personal Capital has been named to the Online Banking Report Hall of Fame, for launching the world's first web-optimized personalized asset management service. Among the Hall of Fame ...

Technorati Tags: cruise, Information About Banking Fraud in China, Banking Fraud In China