The banking business deals with money deposited by customers for both safekeeping and investment. Bank employees must protect customers’ currency from fraud and theft by both internal and external criminals. The content of this paper concerns a potential embezzlement of funds by a bank employee. The Chief Security Office (CSO) discovered the stealing scam at the initial execution stages. Bank security matters fall under my docket, and I had to consider the best way to respond to the threat without compromising the integrity of the bank in the eyes of the public.
I received information that one of the bank employees working in the Information Technology department was altering the payment system to allow payment to an unauthorized account. Although the system did not immediately detect the identity of the account, security staff discovered that it belonged to a relative of the employee but who opened it with false identity documents. This discovery presented critical ethical question because the action of the employee was in breach of a cardinal ethical practice at the bank; integrity . Based on this rule, all employees are required to exercise truthfulness in discharging their duties and avoid actions that compromise the values of the bank. The act of the employee also went against the transparency that the bank strives to maintain with both internal personnel and the public.
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The potential theft of the funds at the bank reflects negatively on the reputation of the bank as a reputed financial institution. Customers invest their money with the bank in the hope that it will protect them from fraudsters ( Belás et al., 2016) . However, if the information of this potential fraud leaks to the public, it results in negative reviews in the press ultimately leading to mass withdrawals. The bank will also experience hurdles in obtaining new customers due to adverse publicity. The bank may go bankrupt from lack of income arising out of negative media coverage. In my capacity as the CSO, I will present a proposal for a change in the banking software in response to this potential violation. Change in the system for banking will cost the institution sizeable revenue. All the decisions made in response to the security threat will have financial implications and affect the bank's annual balance sheet.
The bank needs to seal all loopholes for siphoning of funds by employees. Bank workers have access to bank documents, and a number of them have administrative rights to the automated banking program. One of the actions to be included is installing tamper-proof firewalls to the software and award limited rights to individuals with high levels of integrity. A neutral IT company who retain the express powers of adjustment must host the system. The hosting company must also bear legal responsibility in case of system leaks to unauthorized users. The management must ensure they shield information system from alteration by bank employees ( Albashrawi and Lowell, 2016) . The system administrators must also provide for routine changes to passwords without prior notice to staff that bear limited rights of access. The security officials must also incorporate a signal system that sends alerts to the bank manager and the provider of the service. In this regard, the company can quickly detect tampering and conduct quick investigations to defeat any attempt to defraud the bank of customer's funds.
I would handle the security threat with a lot of caution so as to ensure that the employee faces the consequences of his actions based on company policy regarding disciplinary matters. My decision would also derive from the need to protect the reputation of the bank. The success of the banking business thrives on public impression. I will avoid situations where this potential scandal would leak into the popular media. To ensure that the victim pays for his possible criminality and also protect the integrity of the bank, I would suggest to the disciplinary committee to dismiss the staff from work through an elaborate system of information gathering outside the public glare. The highest priority of the intervention will be to maintain the integrity of the bank as a preferred and secure financial institution.
A similar crime committed by an outsider would be handled ruthlessly in a court of law. Outsiders have no stake in the bank and only pose a threat to client's investments. Furthermore, It will be in the interest of the bank assures their customers that the institution takes serious exception of fraud cases involving customer investments ( Belás et al., 2016) . Nevertheless, the bank will have nothing to lose if the case appears in the media. On the contrary, media coverage of the court processes will place the institution in a favorable light in the eyes of the public. The public should never get the impression that the bank tolerates any economic crime that puts their savings and investments in jeopardy. The reputation of the bank must occupy the highest priority while dealing with an external perpetrator of the fraud.
Several steps can lead to minimizing bank fraud perpetrated by employees. Employing technology is a sure mechanism that allows automation of the routine functions like payment of salaries and updating customer credit records. Automation makes it easy to identify the point of an anomaly and reduces the propensity of employees to engage in theft of bank funds ( Belás et al., 2016) . However, the automation platform must enjoy protection by secure firewalls that limit access to outsiders. The bank can also encourage information sharing through conferences and other trusted communities. When organizations embrace the art of information-sharing, it promotes the transparency among the critical stakeholders among the concerned stakeholders.
The security agencies must ensure that they institute a security assessment across the banking departments. While dealing with crime, authorities must seal every possible loophole ranging from the bank officials to the customers and outsiders. Periodic evaluations ensure that any breaches in security emerge in time and remedial measures taken. The authorities must also be discreet in the issuance of passwords for accounts management to a limited number of staff . Assigned personnel must ensure continuously monitor the online activities of staff; the data collected acts as a reasonable basis for audit ( Albashrawi and Lowell, 2016). Through this practice, suspicious activity can be linked to specific employees and aid in instituting remedial action. Implementation of standard security measures dramatically contributes to safeguarding bank revenue from a loss to unscrupulous persons.
The banking business largely depends on the public. In this regard, the banks' security department must exercise caution in exposing scams concerning employees. However, strict adherence to required security provisions is a deterrent to theft and other unethical practices by bank employees. Banks must acknowledge the constant potential of security breaches by their staff and employ discreet prevention and disciplinary mechanisms away from public scrutiny.
References
Albashrawi, M., & Lowell, M. (2016). Detecting financial fraud using data mining techniques: A decade review from 2004 to 2015. Journal of Data Science , 14 (3), 553-569.
Belás, J., Korauš, M., Kombo, F., & Korauš, A. (2016). Electronic banking security and customer satisfaction in commercial banks. Journal of security and sustainability issues , 6(1), 300-344.
