RE: LeoThread 2024-12-22 00:43

[ahmadmanga]

A Simple Yet Ignored Solution to Financial Fraud

The banking industry has a long-standing problem with fraud, costing clients billions of dollars annually, but a simple solution exists: forcing bankers to work from home. A recent study found that bankers are five times less likely to engage in financial misconduct when working from home.

Comments

[ahmadmanga]

Reasons Why Working from Home Reduces Misconduct

• 📊 Everything done from home is recorded, making it easier to track and prevent fraud.
• 📝 In-person conversations, which can lead to misconduct, are reduced when working from home.
• 🚫 The absence of private conversations between managers and staff reduces the pressure to push unwanted products onto clients.

Types of Conversations that Lead to Misconduct

• 💼 Bank managers may pressure staff to sell products, prioritizing targets over clients' best interests.
• 📈 Insider trading can occur when bank staff share material non-public information, which can be difficult to track and prosecute.
• 🙅‍♂️ Common lies to cover up negligence can be more easily hidden in face-to-face conversations.

[ahmadmanga]

Why Executives Won't Allow Working from Home

• 🚫 The systems in place to monitor staff for misconduct are too good, making it harder for executives to ignore or sweep misconduct under the rug.
• 👥 Being in the office allows for more flexibility to bend rules and negotiate with clients, which can be a selling point for businesses.
• 🏢 Companies have too much invested in their offices and may prefer to have staff return to the office, even if it means ignoring the benefits of reduced misconduct.