The Inside Story:

Fraud from Within

The fear of fraud is a constant. Unfortunately, now more than ever before, fraud is being committed by employees on the inside, the very people who are supposed to be supporting and protecting an organization.

Fraud from Within

Even though the financial industry is one of the most regulated, financial institutions are still getting hit with the highest rates of internal fraud.1 And it’s not just the big guys, it’s everyone from the largest to the smallest.


23% of financial fraud cases cause over $1 million in losses.1


Insider fraud accounts for 50% of all bank fraud.2


Of all convictions related to financial institution fraud are bank insiders.3

Financial institutions have the highest rates of internal fraud.

The Suspects

Unfortunately, it’s hard to predict who might commit fraud at an organization since a vast majority of perpetrators are first time offenders.1


Of fraud is from individuals working in accounting, operations, sales, upper management, customer service, purchasing and finance.1


Of all fraud at financial institutions doesn’t require technical knowledge of the systems in place, and is committed using systems and processes that employees have authorized access to every day.4

79% of perpetrators display behavioral warning signs, most common are:

  • Living beyond means
  • Financial difficulties
  • Unusually close association with a vendor or customer
  • Excessive control issues
  • A general “wheeler dealer” attitude involving unscrupulous behavior
  • Recent divorce or family problems.1

There’s no typical face of internal fraud – it can be perpetuated by anyone.

The Details

There’s simply more data out there ready to steal and more avenues available to access it.


Of employed adults use at least one personally owned electronic device for work.5


Of organizations that have experienced a data breach due to unsecure electronic devices.5


Of organizations say they’re “fully aware”of all the devices accessing their network.5

Estimated number of goods or services on the “Internet of Things” that will be sharing data over the Internet by 2020, including sensors in cars and household appliances.1

Sharing data online is estimated to grow 10-fold, increasing the chances of data being compromised.1

The Investigative Approach

Insider fraud is a serious problem, but there are ways financial institutions can detect and prevent it.


Of all inside fraud at financial institutions is discovered through an employee tip.1


Of all tips were delivered via telephone hotlines, while 34% were sent via email. 1

Faster Fraud Detection

Organizations that have anti-fraud controls in place detect fraud 2x more quickly than those who don’t, and report lower average lower fraud losses.1

By having multiple anti-fraud programs in place, organizations can reduce inside fraud.

Financial Partnership

First Data partners with financial institutions to manage transactions more efficiently, strengthen customer privacy protections and reduce fraud losses. Our security and fraud solutions not only help protect against data exposure; they also help you detect fraud earlier to give your institution a competitive edge.

Contact First Data today:
Call 866-965-8330

Connect with First Data:

Call: 866-965-8330