The use of illegal means to obtain money, assets or other property held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. Common forms include check kiting, the submission of falsified loan applications, the unauthorized use of another person's account credentials, and schemes designed to deceive a bank into releasing funds it would not otherwise release. In the United States it is prosecuted as a distinct federal offense given the systemic risk that fraud against depository institutions poses to the wider financial system.
Facts
Classification CodeIn the United States, bank fraud is codified at 18 U.S.C. 1344, which makes it a federal offense to knowingly execute or attempt to execute a scheme to defraud a financial institution or to obtain its money, funds or other property by false or fraudulent pretenses. 1 Typical PenaltyA conviction under the federal bank fraud statute, 18 U.S.C. 1344, carries a fine of not more than one million dollars, imprisonment of not more than thirty years, or both. 1 Elements of OffenseBank fraud takes several documented forms, including check kiting, which exploits the float, the brief window in which a bank counts the same money twice as a check clears, and the use of forged documents to conceal a theft from an institution that otherwise accounts for its money meticulously. 1 Notable ExampleOne of the largest documented bank fraud cases by amount is the 2014 Moldovan bank fraud scandal, in which roughly one billion dollars disappeared from three Moldovan banks. 1 Jurisdiction VariationAustralia addresses bank fraud through a dedicated government-wide mechanism rather than a single fraud statute: the Commonwealth Fraud Control Framework sets out the prevention, detection, investigation and reporting obligations the Australian Government requires for fraud control generally, bank fraud included. 1 Classification
Offense GradeSerious or Indictable Offense 1 Connections
Associated With
Bank fraud against federally insured institutions is a federal white-collar offense; the FBI names combating major white-collar crime among its own stated top priorities.
Source Federal Bureau of Investigation (Wikipedia)
Has Offense Grade
Entity-backed identity for the offense-grade enum value this offense already carries, resolved to a crime concept by an explicit value-to-entity map (phase 3 bucket conversion, docs\design_entity_backed_browse_buckets_20260928.md). The offense-grade fact itself stays on the offense unchanged.
In the Other Atlases
- Also in Geography Atlas: Australia, found in there.
Sources
1. Bank Fraud (Wikipedia)
Wikipedialead paragraph, first sentence
Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution.
Methods, cheque kiting and the float
Cheque kiting exploits a banking system known as 'the float' wherein money is temporarily counted twice.
Statute text, 18 U.S.C. 1344
18 U.S.C. § 1344 states: Whoever knowingly executes, or attempts to execute, a scheme or artifice to defraud a financial institution; or to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises
Statute penalty clause, 18 U.S.C. 1344
shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.
2014 Moldovan bank fraud scandal
2014 Moldovan bank fraud scandal, $1 billion
Australia, Commonwealth Fraud Control Framework
The Commonwealth Fraud Control Framework outlines the preventions, detection, investigation and reporting obligations set by the Australian Government for fraud control.
View the Source Federal Bureau of Investigation (Wikipedia)
Associated With: Federal Bureau of Investigation, Priorities sectionQuote, Associated With: Federal Bureau of Investigation, Priorities section
Combat major white-collar crime
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