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ing and various other methods that is used by scammers.
Bank frauds are carried out either by an internal sources or an external source in many different ways. Here is a look at some of them:
i. Fund transfer fraud:
Insiders in the bank use this method along with forged documents of a customer who frequently transfers funds and wire money to their own accounts in foreign countries.
ii. Forged documents:
Documents are manipulated by workers or insiders at the bank as the daily accounts have to be balanced. The sum or amount that is forged is deposited or taken by the insider caring it out. Generally there is someone who aids and abets and gets a commission, from the money that is swindled.
iii. Identity theft:
Customers personal information is used to carry out identity theft in banks or in other financial institutions. Since insiders have all the data on the customer they will use it to obtain banking facilities.
iv. Demand draft fraud:
Demand drafts are issued by an employee to foreign banks, of course to their own accounts and usually since demand drafts paid for without any questions being asked, this type of fraud goes unnoticed until at least 7 months, when it is too late to recover the funds.
v. Stolen cheques:
Stolen cheques - Fraudsters get access to cheque books, use the customer's signature to withdraw money and issue cheques. The customer eventually gets caught, but he is obviously the innocent party.
vi. Credit card frauds:
Fraudsters use credit cards to carry out various crimes, usually they manipulate duplicate or forge the details on the credit card to their benefit. These frauds cannot be traced quickly and takes years and years of investigations.
vii. False loan application:
Loan applications are filed out using false and misleading information, false supporting documents.
Bank frauds are carried out either by an internal sources or an external source in many different ways. Here is a look at some of them:
i. Fund transfer fraud:
Insiders in the bank use this method along with forged documents of a customer who frequently transfers funds and wire money to their own accounts in foreign countries.
ii. Forged documents:
Documents are manipulated by workers or insiders at the bank as the daily accounts have to be balanced. The sum or amount that is forged is deposited or taken by the insider caring it out. Generally there is someone who aids and abets and gets a commission, from the money that is swindled.
iii. Identity theft:
Customers personal information is used to carry out identity theft in banks or in other financial institutions. Since insiders have all the data on the customer they will use it to obtain banking facilities.
iv. Demand draft fraud:
Demand drafts are issued by an employee to foreign banks, of course to their own accounts and usually since demand drafts paid for without any questions being asked, this type of fraud goes unnoticed until at least 7 months, when it is too late to recover the funds.
v. Stolen cheques:
Stolen cheques - Fraudsters get access to cheque books, use the customer's signature to withdraw money and issue cheques. The customer eventually gets caught, but he is obviously the innocent party.
vi. Credit card frauds:
Fraudsters use credit cards to carry out various crimes, usually they manipulate duplicate or forge the details on the credit card to their benefit. These frauds cannot be traced quickly and takes years and years of investigations.
vii. False loan application:
Loan applications are filed out using false and misleading information, false supporting documents.
If your stock broker BMA Wealth Creators have conducted unauthorized trades in your account, you are not alone. In fact, in percentage terms BMA Wealth Creators gets six times more complaints than any other stock broker as per the report 1c filed by NSE in the following links: http://www.nseindia.com/invest/content/arbitration_reports/report_1c_2012_13.htm, http://www.nseindia.com/invest/content/arbitration_reports/report_1c_2011_12.htm.
ReplyDeleteIf you calculate (No of complaints received against the TM/No of UCCs at the beginning of the year)*100 for every trading member you will find that the statistic for BMA is an outlier for last 3 years.
Now the question is why NSE ignores such a repeat offender ? Perhaps because they have on NSE Executive Committee Mr. Anubhav Bhatter Managing Director & CEO, BMA Wealth Creators Ltd. http://www.nseindia.com/content/us/us_ec.htm
How to act when BMA Wealth Creators Ltd has conducted unauthorized trades in your account ?
1. Write a letter to BMA informing them that trades have been conducted in your account without your consent.
2. Complain to SEBI through their online complaint portal http://scores.gov.in/Complaint.aspx?flag=n .SEBI will forward your complaint to NSE. Do not complain to NSE directly because NSE is not under the ambit of RTI.
3. File an FIR with the police. Remember BMA is a habitual offender and are tough nuts to crack.
4. BMA Wealth Creators Ltd must reply to NSE within one month as per the SEBI circular: http://scores.gov.in/Complaint.aspx?flag=n. However, chances are you will not get any reply from them. File reminders through SEBI SCORES website. NSE maintains an online audit complaint trail. If no reply comes within one month file an RTI application with SEBI demanding what action has been taken on your complaint. This speeds up the normally inactive NSE ISC department. Write a letter to SEBI why no penal action is taken against BMA for not replying within one month as per the above circular..
5. If the amount involved is very big, hire a lawyer and file a suit with the high court.
Remember that you are not only up against BMA but BMA + NSE. Act fast. If you have also been cheated by BMA and have any suggestions please share here so that others may benefit.
Great post.I'm glad to see people are still interested of Article.Thank you for an interesting read.
ReplyDeleteNifty Trading