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    188 - FRD Awrs 2-2014-15

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    There has been steady growth in Canara Bank's vehicle loan portfolio but also an increase in fraud committed by unscrupulous borrowers and dealers. Various modus operandi of fraud are reported, including collusion to misuse loan proceeds, producing fake vehicle registration documents, and opening fictitious accounts. To help branches ascertain if a financed vehicle has actually been registered, the document recommends sending an SMS in the format "VAHAN<space>Vehicle Registration Number" to a provided mobile number, which will respond with registration details. This tool can help branches take timely action but is not the only fraud prevention method; branches should also follow circulars from concerned departments.

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    188 - FRD Awrs 2-2014-15

    Uploaded by

    scribdaashish
    22 views2 pages
    There has been steady growth in Canara Bank's vehicle loan portfolio but also an increase in fraud committed by unscrupulous borrowers and dealers. Various modus operandi of fraud are reported, including collusion to misuse loan proceeds, producing fake vehicle registration documents, and opening fictitious accounts. To help branches ascertain if a financed vehicle has actually been registered, the document recommends sending an SMS in the format "VAHAN<space>Vehicle Registration Number" to a provided mobile number, which will respond with registration details. This tool can help branches take timely action but is not the only fraud prevention method; branches should also follow circulars from concerned departments.

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    188_FRD AWRS 2-2014-15

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    There has been steady growth in Canara Bank's vehicle loan portfolio but also an increase in fraud committed by unscrupulous borrowers and dealers. Various modus operandi of fraud are reported, including collusion to misuse loan proceeds, producing fake vehicle registration documents, and opening fictitious accounts. To help branches ascertain if a financed vehicle has actually been registered, the document recommends sending an SMS in the format "VAHAN<space>Vehicle Registration Number" to a provided mobile number, which will respond with registration details. This tool can help branches take timely action but is not the only fraud prevention method; branches should also follow circulars from concerned departments.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    22 views2 pages

    188 - FRD Awrs 2-2014-15

    Uploaded by

    scribdaashish
    There has been steady growth in Canara Bank's vehicle loan portfolio but also an increase in fraud committed by unscrupulous borrowers and dealers. Various modus operandi of fraud are reported, including collusion to misuse loan proceeds, producing fake vehicle registration documents, and opening fictitious accounts. To help branches ascertain if a financed vehicle has actually been registered, the document recommends sending an SMS in the format "VAHAN<space>Vehicle Registration Number" to a provided mobile number, which will respond with registration details. This tool can help branches take timely action but is not the only fraud prevention method; branches should also follow circulars from concerned departments.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    CANARA BANK FRAUD AWARENESS SERIES 2/2014-15

    REVIEW & REPORTING SECTION


    T R F P WING, HEAD OFFICE DATE :16.07.2014
    BANGALORE

    FRAUD AWARENESS TOOL IN CANARA VEHICLE PORTFOLIO

    Of late there is steady growth under Canara Vehicle loan portfolio of the Bank
    due to many initiatives undertaken in marketing, publicity and relaxations
    permitted in scheme guidelines. Though it is a positive sign, the scheme is also
    plagued by frauds committed by unscrupulous borrowers in collusion with
    mainly vehicle distributors/dealers. There is also a steady increase in the
    number of frauds despite issuance of fraud awareness series/ circulars by TRFP
    Wing which was aimed at enhancing awareness level on frauds at grass root
    level.

    We are receiving reports on frauds committed through various modus operandi,


    some of which are.

    1. Collusion between the borrower and dealer where the loan proceeds are
    misused.

    2. Borrowers take delivery but do not register the vehicle with RTO

    3. Borrowers produce fake/fabricated RC, Insurance copy with noting of banks


    lien where, in reality the vehicle would not have been registered with RTO

    4. Opening of fictitious accounts in the names of dealers with other Banks and
    misusing the loan proceeds by crediting DD amount to these accounts.

    5. Opening loan accounts through impersonation.

    In view of the growing concern about the rampant increase in the above
    incidents due to Callous /Laxity in processing and post sanction monitoring,
    TR&FP Wing would like to share a simple TOOL to ascertain if the vehicle has
    been registered with RTO when the borrower deceitfully submits the vehicle
    documents to the branch.

    Please send SMS and type the following “VAHAN<space> Vehicle Registration
    Number” send the message to mobile no. 9212357123. Immediately a
    message will flash with the details of registration, along with Road Tax paid
    details.
    (eg.VAHAN KA01MB7489)
    This above exercise will help the branch in ascertaining if the financed
    vehicle has been registered or not, so that timely action may be initiated.

    Please note that the above tool is not the ONLY method of exercising
    caution, Branches to be guided by circulars issued from time to time by
    concerned wings.

    S K VERMA
    GENERAL MANAGER

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