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Robert was the chief teller in a large New York bank. He is the only one who control most of the customer accounts, through reviewing these accounts and receiving customers inquires of their accounts. Over a period of three years Robert embezzled some money from these accounts.

Before Robert joined the bank, he used to work in a firm that give good salary. However, he was terminated from that firm because of violation of ethical rules. Robert feels that his life is miserable.

When he joined the bank he could not make a good friendship at work. He always seems to be alone even during the break time. In addition his boss at the bank is very rude, and he does not treat employees nicely. Additionally, Robert's daughter suffer from health issue that required medical treatments. Unfortunately the health insurance policy does not cover this medical treatment, and that affect him financially.

The New York bank which Robert work in suffering from multiple fraud activities. Although the bank implementing multiple internal controls, yet some management override these control as they think these controls consume more time and delay the process. The bank also have created the hotline as part of the whistle-blower system, which report directly to the CEO. Yet there was no report received through the hotline.

Required:

Discuss and explain what the bank should have done to prevent Robert from committing fraud. Use the factors you learn to prevent fraud through eliminating pressure, rationalization, and opportunities.

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