Fraud has been a problem for banks for as long as they have existed. But right now feels like a moment of truth for the industry as lenders grapple with a gaggle of bad actors trying to wash their cash through the system.
While the original fraud story, broken by the Financial Review, focused on Commonwealth Bank, it’s almost certain all the big banks will be affected. At least some of the fraudulent loans identified had been refinanced to or from other institutions, a source with direct knowledge of the matter told Capital Brief.
Clearly, no bank is immune. In all likelihood, CBA has found itself at the epicentre not because it is uniquely exposed, but because it found the problem first. Every big bank in the country is now, no doubt, screening its own book.
None of the majors would comment on those internal reviews when approached by Capital Brief. Perhaps they should start with their commission-paying external channels, which loom as one of the biggest fraud risks right now, according to banking veteran Brian Johnson.
