Cases of financial institutions being defrauded are not uncommon worldwide, with diverse methods and constantly upgrading technologies. The following is the detailed process of several typical cases, covering different types of fraud： --- ### **1. The SWIFT system hacking case of the Central Bank of Bangladesh (2016)** -**Fraudulent methods**: Hackers used phishing emails to invade the system of the Central Bank of Bangladesh to obtain operating permissions for the SWIFT international transfer system. -**Process**： -Hackers used forged internal bank emails to induce employees to click on malicious links and implant trojan programs. -After obtaining the credentials, the hacker initiated 35 transfer instructions (totaling approximately US9951 million) through the SWIFT system, requesting that the funds be transferred to private accounts in the Philippines, Sri Lanka and other places. -Due to a spelling error (misspelling “Foundation” as “Fandation”), some transactions were intercepted by the intermediary bank (New York Federal Reserve), but US881 million was still successfully transferred to the Philippine account. -Funds are laundered through Philippine casinos and underground money banks, which are ultimately difficult to recover. -**Key vulnerability**: The bank has not isolated the SWIFT system from the office network, and lacks a transaction verification mechanism. --- ### **2. Internal transaction fraud case of Societe Generale (2008)** -**Fraudulent methods**: Traders use internal system vulnerabilities to cover up high-risk transactions. -**Process**： -Junior trader Jérôme Kerviel bypassed the risk control system by falsifying hedging transactions and delaying the entry of transaction records. -He used his understanding of the back-office system to falsify emails and documents to approve false transactions, which ultimately caused the bank to lose 4.9 billion euros (about 7.1 billion U.S. dollars). -The fraud lasted for nearly two years until the system automatically triggered an alarm. -**Key vulnerability**: The background is separated from the front desk risk control, and the management ignores abnormal transaction warnings. --- ### **3. Malaysia's 1MDB Fund money laundering case (2015)** -**Fraudulent methods**: Senior government officials conspired with financial institutions to misappropriate sovereign funds. -**Process**： - Former Malaysian Prime Minister Najib and others raised funds (approximately US44.5 billion) through bonds issued by Goldman Sachs, falsely claiming to be used for infrastructure projects. -Funds are transferred to private accounts through shell companies (such as “Good Star Limited”) for the purchase of art, real estate and Hollywood film investments (such as "The Wolf of Wall Street"). -A number of banks (such as BSI in Switzerland and UBS in Singapore) have been fined for negligence in anti-money laundering reviews. -**Key loopholes**: The bank's compliance review of “bank accounts” is in form. --- ### **4. Agricultural Bank of China Bill Fraud Case (2016)** -**Fraud methods**: Bank employees collude with external personnel to falsify bills to obtain funds. -**Process**： -Two employees of ABC Beijing Branch took out the real bills (worth 3.9 billion yuan) before the repurchase expired and replaced them with forged bills. -Funds flowed into the stock market through the private bill discount market, and then problems were exposed due to the stock market crash. -The case involved a number of intermediary agencies, exposing serious loopholes in the bill custody process. -**Key loophole**: The “double custody” system of bank note repositories is useless. --- ### **5. The London Whale Incident (2012)** -**Types of fraud**: Derivatives market manipulation and risk concealment. -**Process**： -J.P. Morgan trader Bruno Iksil distorted market pricing by placing large bets on CDS (credit default swaps). -To cover up the loss, the team used a false valuation model to mark the loss as “temporary volatility”, which eventually led to a loss of US66.2 billion. -**Key loopholes**: Bank proprietary trading is not effectively isolated from customer assets, and management acquiesces to high-risk strategies. --- ### **6. PNB Bank of India Letter of Credit Fraud Case (2018)** -**Fraudulent methods**: Use loopholes in the bank guarantee system to forge documents. -**Process**： -Jeweler Nirav Modi colluded with PNB Bank employees to obtain overseas loans through unregistered “Letter of Undertaking” (LoU, letter of Guarantee). -The amount involved in the case reached US11.8 billion, and the funds were laundered through multinational shell companies. -The case exposed a fatal flaw in India's inter-bank SWIFT system and the core banking system that are not connected to the internet. --- ### **7. Cryptocurrency exchange Mt. Gox hacking incident (2014)** -**Fraud methods**: System vulnerabilities and internal self-theft. -**Process**： -Hackers took advantage of the “transaction malleability” vulnerability of the exchange system to repeatedly extract Bitcoins and steal 850,000 coins (worth 450 million US dollars at the time). -Follow-up investigations found that some bitcoins were actually misappropriated by exchange insiders. --- ###**Common analysis of fraud** 1. **Technical vulnerabilities**: Such as insufficient SWIFT system security and loose internal system rights management. 2. **Human factors**: Employee collusion, management ignoring early warnings, compliance culture