Original URL: http://www.theregister.co.uk/2008/05/02/hsbc_fraud_foiled/

HSBC foils '£70m fraud'

Police called in over 'improper' transfer

By John Oates

Posted in Security, 2nd May 2008 10:39 GMT

An HSBC worker has been charged after police were called in to investigate an alleged attempt to defraud the bank out of a whopping £70m.

City of London police have charged Jagmeet Channa, a 25-year-old from Ilford in Essex, with conspiracy to defraud, money laundering, and abusing a position of trust. Three other men have been bailed on related offences. Channa will appear in court on 25 June.

Channa was reportedly a back-office worker at the bank rather than a trader.

HSBC said: "HSBC is cooperating fully with a police investigation into an alleged fraud at the bank. As the matter is before the courts we cannot comment further. No customer funds were involved and no transactions were disrupted. No customer or bank funds were lost in the alleged fraud.".

It appears HSBC's control systems picked up an allegedly improper transfer of funds.

If successful, the alleged fraud would have accounted for a big percentage of the UK's total figures - APACS estimates total UK card fraud in 2007 was £327.6m.

Of course, High Street banks have managed to lose much greater sums through their own investment activities, and French bank SocGen misplaced €4.9bn thanks to rogue trader Jérôme Kerviel.®