Analysis of Loss Events into Basel Categories

1,Suburban Chicago Relatives Sentenced in Health Care Scam

  Category: External Fraud

  The chiropractor in that case falsified medical records and billed irrelevant services to the wheeling company, which is considered a phony-billing scheme. Such scams that the company itself cannot control considered as External Fraud.

2, Equifax Says Cyberattack May Have Affected 143 Million in the U.S.

  Category: External Fraud

The loss of Equifax, which is one of the major consumer credit reporting agencies, is because of hacking. Important private and financial information of over one hundred million of Equifax users was leaked. This kind of loss that caused by hackers considered as External Fraud.

3, Deutsche Bank Handed a Hedge Fund $6 Billion on a ‘Fat Finger’ Error

 Category: Execution, Delivery& Process Management

“Fat Finger” error, which means the employee made a mistake when they typed in the information, caused the loss of Deutsche Bank. So it considered Execution, Delivery& Process Management Loss.

4, Wells Fargo to Pay $3.5 million to Settle Training-Fee Repayment Class Action

   Category: Employment Practices& Workplace Safety

   The new financial advisors of Wells Fargo Advisors sued the firm because it charged the training costs unlawfully. The loss caused by inappropriate employment is considered as  Employment Practices& Workplace Safety Loss.

5, Payments glitch at HSBC Leaves Thousands of Britons Without Wages

  Category: Business Disruption & System Failure

  The customers of HSBC can’t get their money because the bank system occurred errors through electronic transactions. The loss caused by system breakdowns is considered as Business Disruption & System Failure Loss.

6, 7 Wall Street Institutions Slammed By Hurricane Sandy

Category: Damage to Physical Assets

Hurricane Sandy damaged Wall Street banks since it battered New York and New Jersey. The loss caused by natural disaster is considered as Damage to Physical Assets Loss.

7, CitiFinancial Pays $907,000 for Reposessing U.S. Military Servicemembers’ Vehicles

 Category: Clients, Products& Business Practice

CitiFinancial is fined by Justice Department because it repossessed property illegally from U.S. military. The loss because of  not complying with laws and regulations is considered as Clients, Products& Business Practice Loss.

8, $5 million in Cash, Valuables Stolen in Brooklyn and Queens Bank Robbery Streak; Torch used to Burn through Roofs, Vaults

Category: External Fraud

New York City banks were robbed and that is considered as External Fraud.

9, Virginia Ex-Bank Vice Presdient Stole Identities, Scammed Employers

 Category: Internal Fraud

The former vice president of Northern Virginia banks stole identities to get the loans illegally. Such embezzlement is considered as Internal Fraud.

10, BofA Fined Record $20 Million by U.K. on Reporting Failures

 Category: Execution, Delivery& Process Management

 Bank of America was failure to report millions of transactions, which didn’t comply with the regulations. The fine caused by inappropriate process management is considered as Execution, Delivery& Process Management Loss.