FRAUDSTERS EXPLOIT LAX BANK STAFF IN INDIA

Two criminals walked away with more than Rp3m from New India Assurance, Oriental Insurance and National Insurance Co in Satara, Kolhapur, Nashik and Panjim last month, simply by altering the amount written out on cheques. The fraudsters took out a personal accident policy, which they cancelled the next day, taking a refund cheque. They then altered the amount to be paid and the name of the recipient and used the express clearance system, where, for payment of a fee, a cheque is cleared the same day. An insurance investigator said that there was “a lot of pressure” for express cleared cheques, so that, even though “the cheques were badly forged”, staff had failed to look at the cheques with sufficient care when processing them. Of the seven cheques presented, five were honoured.