Legal Definitions - financial institution fraud

Financial Institution Fraud (FIF) is a type of fraud or theft that occurs within or against financial institutions. This can include banks, credit unions, and other financial organizations.

According to the federal law, it is a crime to defraud a financial institution. This law covers all financial institutions, not just those insured by the FDIC. Many states also have their own laws against FIF.

Examples of FIF include:

• Commercial loan fraud
• Check fraud
• Counterfeitnegotiable instruments
• Mortgage fraud
• Check kiting
• False applications
• Faulty transactions to off-shore accounts

These examples illustrate how FIF can take many different forms. For example, check fraud involves using fake or stolen checks to steal money from a financial institution. Mortgage fraud involves lying on a mortgage application to get a loan that the borrower is not qualified for.

FIF is a serious crime that can result in criminal penalties of up to 30 years in prison and a $1,000,000 fine.