Faking it
Mortgage risk models can effectively pinpoint borrower and property risk, but how does risk change when an insider has manipulated or misrepresented information on the mortgage application? BasePoint's Frank McKenna investigates the ramifications - and the extent - of insider fraud
Insider fraud is not only misunderstood, but among the most underestimated of risks faced by financial services companies. In the US, estimates of internal fraud perpetrated by employees run to approximately $9 billion annually - or $12 per employee per day - according to KPMG's 2004 Fraud Survey.
In financial services segments such as credit card and retail banking, BasePoint fraud experts estimate that 3%-5% of actual reported fraud losses are caused by internal employees and not by outsiders
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