Via The Register UK -
An HSBC worker has been charged after police were called in to investigate an alleged attempt to defraud the bank out of a whopping £70m.
City of London police have charged Jagmeet Channa, a 25-year-old from Ilford in Essex, with conspiracy to defraud, money laundering, and abusing a position of trust. Three other men have been bailed on related offences. Channa will appear in court on 25 June.
Channa was reportedly a back-office worker at the bank rather than a trader.
HSBC said: "HSBC is cooperating fully with a police investigation into an alleged fraud at the bank. As the matter is before the courts we cannot comment further. No customer funds were involved and no transactions were disrupted. No customer or bank funds were lost in the alleged fraud.".
It appears HSBC's control systems picked up an allegedly improper transfer of funds.
If successful, the alleged fraud would have accounted for a big percentage of the UK's total figures - APACS estimates total UK card fraud in 2007 was £327.6m.
Of course, High Street banks have managed to lose much greater sums through their own investment activities, and French bank SocGen misplaced €4.9bn thanks to rogue trader Jérôme Kerviel.
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For those readers not up on the current exchange rate, that is just over 138 million US dollars.
Greedy much? I wonder how long this employee has been conducted insider fraud. Was this he first attempt at defrauding the bank? My bet is on "No".
Insider attacks are some of the hardest to detect for a large corporation. Employees have historically (and normally still are) trusted more than the general public. Some employees are vetted more than others, so trust can be relative...but you get my point.
Abuse of privileges will continue to be a serious problem....as long as humans exist.
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