1. Fraud Preven+on, Detec+on, and
Management
Vivian Lim
1St Valley Bank
2010 RBAP‐MABS Na.onal Roundtable Conference
Hya= Hotel and Casino, Manila
June 2‐3, 2010

2. Fraud Prevention:
Bank Policies and Procedures
• HR Policy on Personnel:
> Rotation of account specialists and annual leave of
bank officers
• Procedures:
1. Unannounced visits of the Supervisors to clients to
validate account status
2. Accountable receipts are used on field collections
3. Daily checking and turnover of receipts
4. Dual client’s card
(client’s copy must be signed by bank staff)
(bank’s copy must be signed by the client)
1st Valley Bank, Inc.

3. Fraud Prevention
5. Does not allow receipt of loan proceeds by a
representative
6. Daily callback of transactions
7. Clients are informed during orientation that they
should always ask for a receipt for every
payment made
1st Valley Bank, Inc.

4. Fraud Detection
• Bank’s policies:
1. Suspension or leave without pay while full audit
is being conducted
2. Salaries and benefits are on hold
• Initiatives:
1. We train our auditors/supervisors (some are
account specialists before)
2. We mobilize the auditors and supervisors
1st Valley Bank, Inc.

5. Fraud Detection
1. Other Account Specialist/s at the branch
and the Supervisors know the accounts
handled by one employee
2. The bank files legal action
1st Valley Bank, Inc.

6. Fraud Detection
3. Recovery:
> We go after the cash bond/fidelity bond
> We go after the family and negotiate
settlement
> We go after the assets of the offender
or ask collateral from him or from his family
(e.g. home appliances, land title, etc)
1st Valley Bank, Inc.

7. Fraud Management
Handling of information on cases of fraud:
> The bank publicizes it internally to
serve as lesson to other bank staff
1st Valley Bank, Inc.

8. Fraud Management
Managing out:
1. Re assignment to another department not
handling cash
2. Transfer to farthest branch
3. Termination of employee
1st Valley Bank, Inc.

9. THANK YOU!!!
1st Valley Bank, Inc. (A Rural Bank)
www.1stvalleybank.com
Your Lifetime Friend
1st Valley Bank, Inc.