Bank fraud: what are the risks and consequences incurred? 

In 2020, the French Banking Association carried out a study which demonstrated an increase of 37% in documentary fraud in 2019. Faced with this surge in the number of frauds, what sanctions have been put in place? And what are the consequences for fraudsters? We take stock in this article. 

Bank fraud: some reminders 

Bank fraud consists of deceiving financial institutions in order to obtain profit. 

If you need a refresher on the players in the banking sector, it’s here 👉 Focus on the different banking players

Note that bank fraud can be found at different stages of the customer process, namely:

1- During the initial subscription 

2- At the time of financing of services 

3- In order to finance the money laundering and the financing of terrorism 

To find out more about the challenges of bank fraud, go to our dedicated article 👉Bank fraud: definition and issues 

What are the penalties for bank fraud? 

Depending on the documentary fraud carried out, the sanctions will not be the same. Let us tell you more. 

Identity theft in banking 

Identity theft involves using personal data of an individual in order to extract money from them. This illicit activity harms the peace and honor of the person. More concretely, identity theft involves pretending to be another person using their personal information. 

Thus, a fraudster carries out identity theft when he phishes. For what ? Phishing consists of pretend to be a known organization, using its logo and name in particular with the aim of extracting information from the recipient. By stealing the identity of the organization, the fraudster carries out identity theft.

Identity theft is punishable by law. According to'article 226-4-1 of the Penal Code, she is reprimanded for 15,000 euros fine and D'1 year of imprisonment. 

Note that, sometimes, the sanction can be lighter. It then results in a citizenship training course, a custodial or restrictive sentence of liberty or even community service. 

Scam Fraud 

Scam is a fraudulent technique which aims to recover undue sums of money. To qualify as fraud, the offense must contain one of the following characteristics: 

• Using a false name
• The use of false quality 
• The abuse of a true quality 
• A fraudulent maneuver 

Additionally, the fraudster must be aware of their dishonest behavior. 

Today in France, fraud is punishable by a fine of 375,000 euros and a penalty of 5 years of imprisonment, according to thearticle 313-1 of the Penal Code. 

Forgery and use of forgery 

The false represents the falsification of a medium of expression whether physical or intangible. 

According to'article 441-1 of the Penal Code, the use of forgery is punished with a fine amounting to 45,000 euros and can go up to a sentence of 3 years of imprisonment. 

Access to an Automated Data Processing System (STAD) 

Breaking into an Automated Data Processing System (STAD) allows the fraudster to recover confidential information.

For the offense to be punished, it must be possible to demonstrate that access to this data processing system is restricted. 

Wanting to access a STAD is punishable by law. According to thearticle 323-1 of the Penal Code, the penalty incurred is 60,000 euros fine and of 2 years of imprisonment. 

Please note, if the fraudster modifies or deletes data contained in this STAD, the penalty may be increased, depending on the damage caused. 

How can we fight insurance fraud in the long term? 

Legal obligations for banks from 2026 

To combat money laundering and terrorist financing, banks are required to carefully comply with rules of vigilance.

First, according to thearticle L564-2 of the Monetary and Financial Code, banking establishments are obliged to set up a internal control system. He is responsible for ensuring the proper application of internal procedures and the fight against tax evasion and fraud. 

To find out more about implementing internal control, do not hesitate to consult our dedicated article 👉 how to set up an internal anti-fraud unit? 

Secondly, banking establishments are required to suspicious transaction report. Banks must, in fact, declare certain transactions and sums, namely: 

• THE are unusually high of which the reinforced examination did not make it possible to remove the doubt 
• Operations suspected of participating in financing of terrorism 
• The operations for which theidentity of the originator or beneficiary could not be established 

Finovox: a solution adapted to fight against documentary fraud 

As a banking establishment, several tools are at your disposal to actively fight against document fraud. 

Our teams of Finovox experts have developed a SaaS solution that allows documents to be analyzed by identifying alterations made. How does it work? The solution works with different algorithms for coherence analysis, visual, statistical and computer analysis. 

Its use is simple. All you have to do is drag your documents into our solution, they are then analyzed one by one in order to know if they are authentic files or if they have been modified. If they have been altered, Finovox will tell you an account of the falsified area and some how the fraud was committed. 

Today, Finovox's desire is not to miss out on a fraudulent document. Created from scratch by a fraudster or modified using editing software, the document is analyzed from A to Z by our solution. With Finovox, review all your documents, of all types and in all languages! Are you interested in the solution? Don't hesitate to request a demo.