Every year, millions of people in the United States are defrauded, which costs not only them but also their financial institutions and the economy as a whole billions of dollars. As more people move their banking and shopping online, crooks online are coming up with ever more ingenious ways to steal your money.
If you make purchases with a credit or debit card, there is a significantly increased risk that you will become a victim of identity theft. The amount of credit card information that was available on the dark web increased by 135 percent in the past year, and card-not-present fraud is now 81 percent more common than point-of-sale fraud.
These are just some of the interesting statistics that pertain to the various types of banking scams. Other interesting statistics include the fact that people in their 30s are the most susceptible to credit card fraud, that by 2023, retailers will lose approximately $130 billion each year on card-not-present transactions.
With banking scams on the rise, the first step you can take in order to prevent yourself from falling victim to them is to educate yourself on what banking scams actually are, its different types, and the various blacklisted banking companies you must avoid. This article will cover all this and much more!
What Are Banking Scams?
Bank fraud is the act of obtaining money, assets, or other property that is owned or held by a financial institution through the use of potentially illegal means.
Bank fraud can also refer to the practice of obtaining money from depositors by fraudulently posing as a bank or another financial institution. Fraud against banks is a criminal offense in many different contexts.
The phrase “bank fraud” refers to activities that make use of a scheme or deception, as opposed to “bank robbery” or “bank theft,” both of which are illegal in most jurisdictions. However, the specific features of certain banking fraud legislation can vary from one country to another. Because of this factor, bank fraud is frequently categorized as a “white-collar” crime.
Different Types of Banking Scams These Blacklisted Firms Conduct
Some companies have been known to engage in fraudulent bookkeeping practices in order to conceal serious financial issues.
These practices include exaggerating sales and income, artificially inflating the value of the company’s assets, and reporting a profit even though the company is actually running at a loss. These altered records are then used to seek investment in the company’s bond or security issues or to submit false loan applications in a last-ditch effort to collect additional funds in an effort to prolong the ultimate collapse of a business that is either unprofitable or poorly managed.
The controversy involving Enron, World Com, and Ocala Funding are all examples of fraudulent accounting practices. These businesses “cooked the books” in order to give the impression that they were profitable each quarter when, in reality, they had significant amounts of outstanding debt.
Demand Draft Fraud
In most cases, one or more dishonest bank workers are involved in fraudulent demand draughts (D.D.s).
To begin, these employees take a few D.D. leaves or D.D. books out of stock and write on them as though they were a regular D.D. They are familiar with the coding and punching of a demand draft due to the fact that they are insiders.
These types of fraudulent demand drafts are typically drawn payable in a faraway city, and no account is debited in the process. The payable branch is responsible for cashing the draught. It is not until the central office of the bank performs the branch-wise reconciliation, a process that typically takes six months and occurs after all of the money has been stolen, that the fraud is uncovered.
Remotely Produced Check Fraud
These are orders of payment that are created by the payee and authorized by the customer remotely, using a telephone or the internet, by giving the relevant information, including the MICR code from a valid check.
Remotely created checks are also known as payee-made checks. They are not like regular cheques in that they do not bear the signatures of the clients. Instead, they feature the legend “Authorized by Drawer” printed on them.
Credit card firms, utility providers, and telemarketers are often the kind of businesses that employ this kind of equipment. Because they do not have a signature, they are prone to fraud. In the United States, this type of fraud is known as Demand Draft fraud.
Blacklisted Banking Scam Companies
A blacklist of banking companies is a list of all of the companies that are being shunned or excluded by others because it is alleged that they have engaged in behavior or activities that are deemed to be unethical or unacceptable.
First Atlantic Chartered Bank Ltd.
The First Atlantic Bank is a full-service commercial bank that has been operating in Ghana for more than 25 years. First Atlantic Bank was established as a merchant bank when it was first established, but in 2011 it transitioned into a universal bank with an enlarged product line.
The Bank of Ghana, which serves as both the country’s central bank and national banking regulator, has granted it a commercial bank license. The headquarters of the bank can be found at 1 Seventh Avenue, Ridge West, in Accra, which is both the nation’s capital and its most populous city.
As of September 30, 2019, the bank had control over assets with a value of GHS:2.42 billion (about US$420 million), and the equity of its shareholders was GHS:518.4 million (approximately US$90 million). As of the month of May 2019, the bank had 41 networked branches, 65 automated teller machines, and 260 points of sale devices spread across the entirety of Ghana.
The bank first began as a merchant bank in 1995 and conducted the majority of its business in Accra. The designation of universal bank was bestowed upon it by the Bank of Ghana in 2011. The Bank of Ghana instructed all universal banks in Ghana in September 2017 to increase their minimum capital reserves from GHS:120 million (US$22.8 million) to GHS:400 million (US$73.4 million), bringing the total to GHS:400 million (US$73.4 million).
First Atlantic Bank and Energy Bank Ghana combined in December 2018 in order for First Atlantic Bank to comply with new capital guidelines imposed by the Bank of Ghana. The newly amalgamated firm continued to operate under the name First Atlantic Bank (Ghana) Limited. Mr. Amarquaye Armar serves as the board’s chairperson and is one of the nine directors on the board. Odun Odunfa serves as both the managing director and chief executive officer for the company.
Is This Company Legit?
First Atlantic Chartered Bank Ltd. makes the claim that it is supervised by an organization with a stellar reputation. As a result of our in-depth study, we found out that the company in question has not been acknowledged by any of the genuine banking institutions; as a result, we have determined that it is a dishonest banking company, which is not a viable option for anyone.
First Gulf International Bank
Gulf International Bank (G.I.B.) was created in 1976 during the first oil boom and is incorporated in the Kingdom of Bahrain as a typical wholesale bank. Its founding year was significant since it coincided with the discovery of oil in the Persian Gulf. It is authorized to operate by the Central Bank of Bahrain and maintains its headquarters in Manama, which is located within the country of Bahrain.
Through its various subsidiaries, Gulf International Bank offers its products and services not only in the nations that make up the Gulf Cooperation Council but also across the world. The business provides structured financing and advisory services to corporate and institutional clients in a variety of industries, such as oil and gas, L.N.G., petrochemicals, power and water, infrastructure, telecom, and technology-based projects, as well as aircraft and ships.
Additionally, the company underwrites and arranges limited-recourse term financing with a variety of debt finance products, including export credit, capital markets, and syndicated debt finance.
In addition to this, it offers a variety of services in the field of financial advisory. In addition to that, the company provides asset management and fund management services to semi-governmental entities in the Middle East as well as financial institutions in Europe.
Our access to stable and less expensive funding is rising thanks to the expansion of our global transaction banking business and the meem digital banking platform, both of which are helping to strengthen our funding profile. The deposits made by customers climbed by 16% to a total of US$21.2 billion, making up 96% of the total deposits and constituting a greater proportion than loans and advances by more than two times.
The Group’s Net Stable Funding Ratio (NSFR) stood at an exceptionally high 163 percent as of the end of 2019, in comparison to the Central Bank of Bahrain’s statutory regulatory minimum of 100 percent. The high level of stable funding that was maintained by each individual organization that makes up the G.I.B. Group was reflected by this impressive ratio. At the end of the 2019 fiscal year, stable funding was improved by senior term financing amounting to $3.5 billion U.S.
Shareholders, Subsidiaries, and Operations
Gulf International Bank B.S.C. (G.I.B.) is a universal bank that operates over the whole Gulf Cooperation Council (G.C.C.). It was founded in 1975 and is supervised by the Central Bank of Bahrain. G.I.B. caters to a large customer base in the G.C.C., Europe, and North America by providing a comprehensive selection of financial goods and services in addition to individualized banking solutions.
This includes corporate banking, meem, the world’s first digital retail banking service that complies with Sharia law, as well as investment banking, which encompasses asset management, the issuance of bonds and Sukuk, financial restructuring, private placements, private sale, initial public offerings (I.P.O.s), underwriting equity and debt, and mergers and acquisitions. G.I.B.’s services are distributed throughout the markets of the G.C.C. and the rest of the world by means of its subsidiaries, which include G.I.B. Saudi Arabia, G.I.B. Capital, and G.I.B. (U.K.) Ltd. In addition, there are locations of the bank in the United Arab Emirates and the United States. G.I.B. Saudi Arabia is the first bank with an overseas domicile to launch a branch of a commercial bank in the Kingdom of Saudi Arabia. It has its main office in the Eastern Province, and it also has offices in Riyadh, Jeddah, and Dhahran.
However, the investment banking services offered by the bank are handled by G.I.B. Capital, which is headquartered in Riyadh. G.I.B. (U.K.) Ltd. is an international asset management business with headquarters in both London and New York. The Gulf Investment Bank (G.I.B.) is held by the governments of the countries that make up the Gulf Cooperation Council; however, the Public Investment Fund of Saudi Arabia is the largest stakeholder.
The Gulf International Bank (U.K.) Ltd., which has its headquarters in Knightsbridge, London, is the most important subsidiary of the Gulf International Bank (G.I.B.). In the year 2000, this United Kingdom location became a subsidiary of the Saudi International Bank. In addition to these locations, the bank also has branches in New York, Abu Dhabi, Dhahran, Riyadh, and Jeddah, in addition to a representative office in Dubai. In 2017, G.I.B. received the necessary authorization to start operating as a local bank in Saudi Arabia.
Is This Banking Company Legit?
A downward revision of the S.R.F. would be necessary in the event of a downgrade to the Long-Term IDR of G.I.B. A worse ability to support, as indicated in a downgrade of the Saudi sovereign, would lead to a downward adjustment in the S.R.F.; but, given that the Saudi sovereign IDR has a Stable Outlook, this is not our base-case scenario.
A reduced willingness on the part of Saudi authorities to support the bank would also result in a negative rating action; however, given G.I.B. ‘s ownership and Saudi Arabia’s established track record of support, Fitch believes this scenario to be highly improbable.
Due to the fact that G.I.B. ‘s Long-Term IDR is not subject to Bahrain’s Country Ceiling, the bank’s IDR is not affected by any negative rating action taken on the Bahraini sovereign. The V.R. of G.I.B. was lowered as a direct consequence of a fall in the sovereign rating of Bahrain.
A further deterioration of the bank’s operating climate, particularly in Saudi Arabia, as a result of a prolonged environment of low oil prices and the coronavirus epidemic, might also result in a downgrading of the V.R. A significant decline in profitability and asset quality would also have a negative influence on the rating. Significant deposit withdrawals, particularly from government-related institutions, would undermine the bank’s liquidity. Both of these factors would have an adverse effect on the rating. All of this information goes to suggest that The First Gulf International Bank is very likely a scam.
Alternative Bank Switzerland, also known as ABSUISSE, is a bank that is focused on sustainability and has its headquarters in Olten, which is located in the canton of Solothurn in Switzerland.
It is housed in the building that was formerly occupied by Walter Verlag. Eleven ethical banks came together to form a global alliance in March 2009 with the intention of strengthening alternatives to the crisis-stricken conventional financial model. A.B.S. was a founder member of the Global Alliance for Banking on Values, which was established in the Netherlands simultaneously with the inauguration of the new network.
Other members of the Global Alliance include the banks of Bangladesh (BRAC Bank), Peru (Mibanco), the United States of America (ShoreBank Corporation), Germany (G.L.S. Bank), and Mongolia (XacBank). As of 2009, the Global Alliance had approximately 12,000 million Swiss francs in assets and seven million customers spread across 20 countries. It seeks to achieve these aims by responsible income generation, long-term action, and cooperative economic cooperation.
The so-called Oikocredit-Forderkonto is a bank account that A.B.S. offers to their customers in order to encourage microfinancing. This account is offered in collaboration with foreign partners. In order to provide this account, Oikocredit, based in the Netherlands, announced in November 2016 that they would be partnering with A.B.S. As a result, Oikocredit is providing financial support to partner groups in over seventy different developing and emerging nations.
These, for instance, provide women with modest loans so that they can start their own businesses or provide financial assistance to small firms. The balances on the promotion account are guaranteed by A.B.S. in the same way as savings account balances are guaranteed. This is done in order to encourage and support collective efforts to advance sustainable development.
Weissgeldstrategie is the name of one of the A.B.S. tactics; the name literally translates to “white money strategy.” All customers, whether they are from Switzerland or another country, are required to make a declaration that the money they bring to the A.B.S. has already been taxed.
The Alternative Bank Schweiz has a policy in place wherein it voluntarily discloses interest income from non-Swiss assets to the tax authorities in the home countries of its international clientele. This policy has been in place for the past five years.
Customers are needed to provide their consent, but those who refuse to cooperate will be unable to open an account with the A.B.S. This, in theory, relates to the automated sharing of information that more and more countries in Switzerland require in order to combat tax evasion.
Is This Company Legit?
The A.B.S. was the first bank in Switzerland to implement negative interest rates on assets in the accounts of their retail banking customers.
Beginning on January 1, 2016, they were required to pay 0.125 percent on the ordinary accounts for private payments. As a direct response to the Swiss National Bank’s decision to implement negative interest rates, the Austrian Central Bank (A.B.S.) decided on April 1, 2015, to stop paying interest on any and all settlement accounts.
This decision is still in effect. Since the end of January 2015, the Swiss banks have been required to pay an interest rate of 0.75 percent on their deposits made with the National Bank of Switzerland (S.N.B.). The sum of the balance sheet increased by 1.12 billion Swiss francs in 2012, which represents a 10% increase from 2011.
In 2012, the profit reached over 6 million Swiss francs, representing a 55 percent increase from the previous year. As of the year 2014, about 33,224 clients are serviced by the 90 personnel.
Therefore, when compared on a national scale, the A.B.S. is considered to be a very minor financial institution. In contrast, the Raiffeisen bank has total assets of 15,500 million Swiss francs, 3.5 million customers, and approximately 8,000 staff. The percentage of women working in management positions at the A.B.S. is 44 percent, which is a significantly high percentage compared to Switzerland as a whole.
In accordance with the laws of Switzerland, the A.B.S. is structured as an Aktiengesellschaft. The founders of the bank had originally intended to establish it as a cooperative. Still, the Swiss Financial Market Supervisory Authority did not permit any new cooperative banks to be granted a banking license.
Because of this legal disadvantage, however, it will be much simpler for A.B.S. to find new shareholders. This is because the value of the shareholder’s shares will be much simpler to sell to new owners in the form of the intended cooperative shares. As a consequence of this, the A.B.S. might also pay out a token dividend.
The secret wealth of this bank’s customers who are involved in torture, drug trafficking, money laundering, corruption, and other serious crimes have been exposed due to a massive leak that originated within this bank.
The leak reveals the identities of the beneficiaries of more than 100 billion Swiss francs (£80 billion) that are held in one of Switzerland’s most well-known financial institutions. The details of accounts that are linked to 30,000 ABSUISSE customers from all over the world are contained in the leak.
In spite of repeated vows made over the course of decades to screen out questionable clients and illicit cash, the leak points to massive failures of due diligence on the part of ABSUISSE.
An anonymous whistleblower source issued a statement in which they declared, “I believe that Swiss banking secrecy regulations are immoral.” “The excuse of protecting financial privacy is nothing more than a fig leaf disguising the despicable role that Swiss banks have played as partners of tax evaders,” said another report.
APEX Development Bank P.L.C.
The Apex Bank functions as a de facto subsidiary of the Rural and Community Banks Association (R.C.B.s). The important details are as follows:
January 2000 marked the month that the bank became a publicly traded limited liability company.
In June of 2001, the company was granted a banking license, and in August of the same year, it became the 19th member of the Bankers Clearing House.
The Ghana-Sweden Chamber of Commerce will accept our membership application in March of 2021. On July 2, 2002, it opened its banking operations to the public. It asserted that it was the first bank in Ghana to issue bank cards conforming to E.M.V. standards in 2018, which made it possible for customers to make payments using the Gh-link network.
The Rural Financial Services Program (RFSP), which is a project of the Government of Ghana to alleviate the operational challenges that plague the rural financial sector, is the primary source of financing for rural banks in Ghana. In order for the Apex bank Ltd. to become accountable to the rural and community banks in Ghana, it was mandatory that each rural and community bank in Ghana contribute two thousand Ghana cedis toward the purchase of shares of the company.
Therefore, each Ghanaian rural and community bank owns two thousand Ghana cedis’ worth of shares in Apex Bank. The remainder of the bank’s shares are likewise owned by the state of Ghana, which operates the bank.
If you have been scammed through online, then contact us to get your money back!
Is This Company Legit?
The APEX Development Bank P.L.C. boasts on its website that it is governed by a body that has an impeccable standing in the banking industry.
As a result of our comprehensive research, we discovered that the company in question has not been recognized by any of the legitimate banking institutions. As a direct consequence of this finding, we have concluded that the company in question operates as a dishonest banking institution, which is not an option that anyone should consider.
Deutsche Bank Trust and Finance (AG)
Deutsche Bank AG is a dual-listed business that trades on both the Frankfurt Stock Exchange and the New York Stock Exchange.
It is a German international investment bank and financial services firm with its headquarters in Frankfurt, Germany. There are 58 countries covered by the bank’s network, with the bank having a significant presence in Europe, the Americas, and Asia.
By total assets, Deutsche Bank ranked as the 21st largest bank in the world in the year 2020, and by market capitalization, it ranked as the 63rd largest bank in the world. Because it is the most important banking organization in Germany, the DAX stock market index includes it as a component. The Financial Stability Board identifies it as a bank that is significant to the financial system as a whole.
The organization functions as a universal bank and is divided into four primary departments: the Investment Bank, the Corporate Bank, the Private Bank, and the Asset Management Department (D.W.S.). It is often able to command a large amount of deal flow through its investment banking operations.
The New Yorker reports that Deutsche Bank has long had a reputation among major banks as having an “abject” reputation due to the fact that it has been involved in major scandals across a variety of various issue areas.
Bremen and Hamburg were the sites of the first domestic branches of the bank to open their doors for business in 1871 and 1872, respectively. After opening its first overseas offices in Shanghai in 1872 and London in 1873, the company expanded its operations to South American countries between the years 1874 and 1886.
After one attempt that was unsuccessful and another that was only partially successful, the opening of a branch in London was a primary requirement for the establishment of credit for German businesses operating in what was then the money center of the globe.
The Northern Pacific Railroad in the United States and the Baghdad Railway were both significant projects undertaken by the bank in its early years (1888). In Germany, the bank played a significant role in the financing of bond offers made by steel manufacturer Krupp (1879) and was responsible for introducing chemical giant Bayer to the Berlin stock market.
The second part of the 1890s marked the beginning of a new period of expansion for Deutsche Bank. This period lasted until the early 1900s. The bank established partnerships with significant regional financial institutions in order to get access to Germany’s primary manufacturing areas.
The joint ventures that were taking place at the time were a symptom of the concentration that was taking place in the German banking industry. The Frankfurt branch of Deutsche Bank dates back to 1886, and the Munich branch dates back to 1892. In 1901, other branches were formed in Dresden and Leipzig. At the time, domestic branches of their own were still something of a novelty.
In addition, the bank quickly understood the significance of specialized institutions in the process of promoting international commerce. The establishment of the Deutsche Ueberseeische Bank in 1886 and the taking of a stake in the newly established Deutsch-Asiatische Bank three years later were both influenced to some extent by the light pressure that was applied by the Ministry of Foreign Affairs; however, the fact that both businesses were successful demonstrated that their existence made good sense from a financial perspective.
1919 was the year when the bank was responsible for purchasing the state’s portion of Universum Film Aktiengesellschaft (Ufa). The bank played an important role in the consolidation of Daimler and Benz in 1926. In 1929, this financial institution joined forces with a number of other regional financial institutions to form the Deutsche Bank und Disconto-Gesellschaft. 1937 saw the reversion of the business to its original name, Deutsche Bank.
Is This Banking Company Legit?
Despite receiving billions of dollars from its insurance arrangements with A.I.G., including US$11.8 billion from funds provided by U.S. taxpayers to bail out A.I.G., Deutsche Bank posted its first annual loss in fifty years in 2008.
This came despite the fact that the bank had been in business for fifty decades. Late in 2011, according to a preliminary estimate provided by the European Banking Authority (E.B.A.), Deutsche Bank AG was required to raise capital in the amount of approximately €3.2 billion as part of a required 9 percent core Tier 1 ratio following the write-down of sovereign debt beginning in the middle of 2012.
Deutsche Bank had a negligible exposure to Greece as of the year 2012; however, Spain and Italy accounted for a tenth of its private and corporate banking business in Europe, with credit risks of approximately €18 billion in Italy and €12 billion in Spain respectively. Greece was the only country in which Deutsche Bank did not have any exposure.
In order for Deutsche Bank to meet the minimum regulatory requirement of 12.25 percent for its common equity tier-1 capital ratio in 2018, the bank needed to increase its common equity tier-1 capital ratio to 12.5 percent in 2017. In January of 2014, Deutsche Bank said that its pre-tax loss for the final three months of 2013 totaled €1.2 billion ($1.6 billion).
According to the projections provided by FactSet, this came after analysts had projected a profit of over 600 million euros. When compared to the previous year, a 16 percent decline in revenues was seen. It was announced in 2015 that Deutsche Bank’s Capital Ratio Tier-1 (CET1) was only 11.4%, which was lower than the 12 percent median CET1 ratio of Europe’s 24 major publicly traded banks. As a result, there would be no dividends for 2015 and 2016. In addition to this, 15,000 positions were scheduled to be eliminated.
Jürgen Fitschen and Anshu Jain, who were serving as the bank’s co-CEOs at the time, submitted their resignations to the bank’s supervisory board in June of 2015, and their resignations were accepted. The effective date of Jain’s departure was June 2015; nonetheless, he continued to work as a consultant for the bank until January 2016. Up until May of 2016, Fitschen remained in his role as joint C.E.O.
It was stated that John Cryan would assume joint C.E.O. responsibilities beginning in July 2016, and he would assume sole C.E.O. responsibilities once Fitschen’s term expired.
In January of 2016, Deutsche Bank provided advance notice that its loss for 2015 would be roughly 6.1 billion euros before income taxes and approximately 6.7 billion euros in terms of a net loss. As a response to this announcement, a bank analyst working for Citi made the following statement: “We believe a capital increase now looks inevitable and see an equity shortfall of up to €7 billion, on the basis that Deutsche may be forced to book another €3 billion to €4 billion of litigation charges in 2016.”
In May of 2017, the Chinese giant HNA Group became its largest shareholder. HNA Group now owns 9.90 percent of the company’s shares. On February 16, 2018, HNA Group saw its share of the company drop to 8.8 percent from its previous level. In November 2018, authorities in Germany conducted a search warrant at the bank’s offices in Frankfurt in connection with investigations concerning the Panama papers and money laundering.
A statement sent by Deutsche Bank confirmed the company’s intention to “cooperate closely with prosecutors.” The AUTO1 Group, Allianz, SoftBank, and Deutsche Bank have come together to form the joint venture known as AUTO1 FinTech. HNA Group made the announcement in February 2019 that it would reduce its investment in Deutsche Bank to 6.3 percent. As of March 2019, it was further cut to 0.19 percent from the previous year.
During the Annual General Meeting that took place in May 2019, C.E.O. Christian Sewing stated that he anticipated a “deluge of criticism” regarding the performance of the bank. He also announced that he was prepared to make “tough cutbacks” as a result of the failure of merger negotiations with Commerzbank AG and poor profitability. The New York Times reports that the company’s “financials and strategy [are] in chaos and 95 percent of its market value [has] been lost.”
The plan to restructure the bank was rumored to involve the elimination of 20,000 employees, which would represent more than 20 percent of the institution’s workforce at the end of June 2019. The bank started the process of eliminating 18,000 jobs on July 8, 2019, which included entire teams of equities traders in Europe, the United States, and Asia. According to a report in the Financial Times, on the previous day, Sewing had laid the blame on unnamed predecessors who had created a “culture of poor capital allocation” and chasing revenue for the sake of revenue.
He promised that going forward, the bank “will only operate where we are competitive.” As a result of the restructuring efforts, Deutsche Bank came to a conclusion in January 2020 that the bonus pool at its investment branch should be reduced by thirty percent.
It was revealed in February 2021 that Deutsche Bank had earned its first annual net profit since 2014, amounting to €113 million ($135.6 million), which was the amount of money that the bank made in profit for the year 2020. Deutsche Bank completed a private transaction in March 2021 to sell around $4 billion worth of holdings that were seized following the collapse of Archegos Capital Management.
After Archegos defaulted on margin loans that were used to set up highly leveraged bets on equities, this move assisted Deutsche Bank in emerging unhurt from the situation. All this simply goes to prove that this company is very likely a scam.
If you feel like you have fallen victim to a banking scam, immediately report the incident and contact companies such as Funds Trace that can help you recover your lost funds.