Fraud-Related Activities

Operations risk often arises from fraud, or other unanticipated events resulting in the institution’s inability to deliver products or services. This risk exists in each product and service offered. The key to controlling operational risk from fraud-related activities lies in adapting effective policies, procedures, and controls to meet these risk exposures. Basic internal controls including segregation of duties, dual controls, and reconcilements remain important. Information security controls, in particular, become more significant requiring additional processes, tools, expertise, and testing.

Policy Letters

Fraud-Related Activities

Interagency Examination Procedures for Reviewing Compliance with the Unlawful Internet Gambling Enforcement Act of 2006

Debt Elimination Scams

Identity Theft and Pretext Calling

Supervisory Guidance Regarding the Investment of Fiduciary Assets in Mutual Funds and Potential Conflicts of Interest

Guidance on Addressing Internal Control Weaknesses in U.S. Branches and Agencies of Foreign Banking Organizations through Special Audit Procedures

Violations of Federal Reserve Margin Regulations in Custodial Agency Accounts Resulting From "Free-Riding" Schemes

Additional Resources

Manual References

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Last Update: May 19, 2017