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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

International Training & Assistance (ITA)
for Bank Supervisors

Bank Fraud Detection WorkshopFederal Reserve System Courses

Type of Participant Targeted

This introductory program is designed for examiners wishing to acquire knowledge or to refresh their examination skills of basic fraud concepts, fraud detection methods, supervisory actions, interviewing techniques, funds tracing, and the impact of fraud on a bank’s risk profile.


Participants should have a minimum of 18 months of bank examination experience. This program has a pre-course reading assignment consisting of an 11-page hypothetical exam scope memo.

Course Overview

This 4 1/2-day program will introduce participants to basic fraud concepts and walk them through the steps necessary to determine the true nature of various transactions and accounts. Using a combination of case studies, presentations, audios, videos, and hands-on exercises, the course seeks to enhance participants’ fraud knowledge, analytical proficiency, examination skills, and interviewing techniques.

The entire workshop is structured around a case study of a one-week, on-site examination of a hypothetical bank in which loan fraud is detected. Participants play the role of an on-site examination team and are given the opportunity to compare their analysis and findings with those of actors shown in the classroom videos portraying the examiners of the actual bank that was used as the basis for the case study. The videos also introduce new information and provide the outcome for certain actions taken by the examiners during the on-site examination.

Course Objectives

At the end of the course, participants will, at a minimum, be able to

  • Describe the basic types of fraud
  • Identify fraudulent activities
  • Research transactions and trace funds
  • Identify the warning signs of fraud
  • Identify and manage documents
  • Apply interview techniques
  • Explain the effects of fraud on a bank’s risk profile
  • Discuss and understand supervisory actions

Curriculum Overview

Subject Approximate
Class Hours
Introduction / basic fraud concepts 7.00
Funds tracing 5.00
Identification of the warning signs of fraud 7.00
Expanded examination procedures / interviewing techniques 7.00
Supervisory actions / the impact of fraud on a bank's risk profile 3.00
Corporate governance / discussion of current fraud cases and topics 2.00
TOTAL 31.00

Class Size

The minimum number of participants is 16 and the maximum is 25.

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Last update: January 18, 2012