Database Logs Suspected Insiders

  No financial institution likes letting criminals off the hook. But prosecuting them can be more costly than the crimes themselves, both in dollars spent and potential reputational damage. And many crimes employers report to law enforcement do not result in convictions.
  Addressing such issues is a new database launched in late 2006 by BITS, a nonprofit consortium of 100 of the largest financial institutions and a nonlobbying division of The Financial Services Roundtable. The database includes names of employees dismissed for fraud or theft, regardless of whether those employees were prosecuted.
  Financial institutions of any size need not be BITS members to participate but must contribute names of any employees they dismiss for suspicious activities to access the service, says Tony Selway, product manager at Scottsdale, Ariz.-based Early Warning Services LLC, which created and manages the database on behalf of BITS.
  The database complies with the Fair Credit Reporting Act, which also provides procedures for workers who feel they are wrongly accused to dispute their names being in the database, Selway says.
  Though new, the database is growing, which Selway hopes will continue. "The more financial institutions that participate, the more it benefits everyone," he says.
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