RJ and Makay

Banks and other financial institutions need be on extra high alert for fraud by employees, suggests a new study by research and advisory group Aite. There's a good chance such fraud will soon be on the rise, the study indicates.

When Aite anonymously surveyed 35 fraud and product executives in the U.S. and Canada, 40% of respondents said internal fraud by bank employees is likely to increase over the next three years. The remainder predicted roughly the same levels of internal fraud, a term that describes behaviors such as abuse of position and theft by a firm's employees or contractors.