Technology and the frauds in Banking.

The incident which I am narrating dates back to nearly three decades when I was working as a clerk in a semi urban branch. Those were the days of manual ledgers. The best technological tool that was available was an instrument called TI banker which was used for balancing the ledgers. The other tool was a calculator.

A wrong credit of Rs. 15000 was given to an account with almost similar account no. The person has withdrawan the money and was not willing to pay back despite our repeated requests. A memo was served to me. After a few days a person from Regional office descended on the branch for enquiry. As usual I was manning the counters consisting of SB, CA, CC, ACC, ATL ledgers. I was moving from one end to the other like a tennis player who runs from one end of the court to the other. The man who has come for enquiry was observing my heroics sitting in the BMs chamber. After some time he came to me and introduced himself and asked me as to how I gave wrong credit. I was bit panicky and nervous. I was trying to explain that I was manning these many ledgers and it was a salary day and lot of rush was there etc. etc.

The man who had come for enquiry,  patting on my back, said - don't be worried. It is only the person who does work commits mistake. And I have seen you in action for myself. I am very much impressed by your hard work. Afterwards, I don't know what report he submitted and subsequently the amount was recovered and the incident was forgotten.

Look at the present scenario. The credits can come from anywhere. Internet banking, mobile gadgets using digital apps, NEFT, RTGS etc and he can draw from any corner of the country. It's all invisible unlike in the manual scenario. Everything happens in the thin air like a magic. Technology has enabled turning out mind-boggling volumes of transactions, the reach, the speed and has removed the barriers of timings making it a 24x7 and a 365 day affair. Technology has brought with it an equal amount of risk. A risk if not detected quickly may prove to be too costly. The mind boggling volumes we handle often tends to complete the work somehow and makes the level of vigilance required of the transactions difficult to exercise. This has made the job of perpetrators of frauds easier. The fraudsters are usually ingenious and clever enough to circumvent the safeguards and camouflage their trail. This demands presence of mind, knowledge of systems and procedures, a high level of alertness and alacrity on the part of the employee/officer in the frontline.

Prevention of frauds is a joint responsibility of the bank and the staff. For the bank , it is not enough if they just issue SOP, circular, instructions or guidelines. The job of the bank does not end there. There is no lead time to read, understand and seek clarification. Everything comes in quick succession and with immediate effect leaving the staff gaping at the happenings.

The frontline staff should be at least imparted specific training in fraud prone transaction areas. We  the Association, Union and SEWA too should sensitize /educate our members continuously of the need to be vigilant. The proverbial staff shortage, single officer /clerk scenario, and frequent deputations- an adhoc approach to staff shortage are some of the impediments. There is an urgent need to staff the branches reasonably and impart training in these vulnerable areas. Prevention is better than cure. The cyber crimes are a threat to the security of the bank. Thanks to technology. The climate of banking is risky and is becoming hazarduous.

K N Krishnan