Counteracting Fraud and Illegal Business Practices

We strive not only to provide high-quality services but also to counteract fraud and illegal business practices that are potentially harmful to customer interests and the Bank’s reputation.

In 2011, the Bank prevented fraudulent acts that would have led to the theft of a total of some RUB 1.8 billion from customer accounts. In addition, in 2011 several infringements by the Bank’s employees were identified with appropriate actions taken against the infringers.

Bank employee infringements uncovered in 2011

Infringements Response
Bank insider schemes — providing unrecoverable loans using false documents Criminal charges filed against five employees identified as the result of an inspection
Two incidents of customer privacy violation and loss of customer data due to the fault of employees The Prosecutor’s Citation and the order of the respective federal supervisory service (Roskomnadzor) regarding the incidents were executed; to prevent similar incidents in the future, preventative steps were taken at all regional banks

Key measures to minimise fraud risks

Area Measures implemented
Ensuring customer security on the Sberbank Online service Implemented a new Sberbank Online security concept
Introduced a system of cumulative daily transaction limits
Introduced measures to reduce the visibility of financial products in customers’ personal areas
Ran a large-scale campaign (text messaging, press releases, web publications) to educate customers about measures to prevent fraud
Preventing illegitimate appropriation of customer money Resolved to install passport verification equipment for customers. Prepared guidelines on how to identify forged personal identification documents
Approved the Action Plan on Preventing Fraud in Remote Banking Systems

We track all attempts at cash machine and card fraud and take timely measures to counteract them. In 2011, we detected more than 700 incidents of skimming or similar equipment being installed at the Bank’s cash machines and criminal charges were filed.

The Bank uses the most advanced information security solutions to minimise fraud risks. This was confirmed by the following:

  • An annual audit of the Bank’s IT services management system, including information security management, which confirmed compliance with the requirements of the ISO/IEC 20000 international standard;
  • Confirmation of the Bank’s compliance with MasterCard’s Logical Security Requirements and Physical Security Standards;
  • A successful audit of the Bank’s compliance with mandatory personal data security legal requirements.

The Bank is currently implementing a system of measures necessary for PCI-DSS certification.

The key developments in the field of anti-money laundering and counter-terrorism financing (AML/CTF) in the reporting year were:

  • The launch of a project to deploy an AML-class system, allowing for extended analysis of customer transactions and timely identification of hidden connections between participants in money laundering, illegal capital export or large-scale money transfer schemes;
  • Enhancement of АС Back-Office three-tier architecture so as to enable effective analysis of retail customers’ transactions for AML/CTF purposes;
  • Development of a unified distance learning course for managers at customer service outlets and bank tellers;
  • A series of videoconferences with representatives from state financial monitoring bodies in order to develop a common approach towards identifying suspicious operations and transactions subject to mandatory control.
The Bank is currently implementing a system of measures necessary for PCI -DSS certification

In 2011, incidents of corruption were identified among both the Bank’s employees and its business partners. Given that combatting corruption is one of the key elements of our corporate responsibility, we carry out thorough investigations into such incidents and the circumstances leading up to them, and take appropriate action based on the results of investigations.

Incidents of corruption in the Bank’s operations in 2011

Total number of employees dismissed or reprimanded for corruption 8
Number of contracts with business partners not prolonged due to corruption-related infringements 1


My Annual Report

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