CANARA BANK FRAUD AWARENESS SERIES 2/2014-15

REVIEW & REPORTING SECTION

T R F P WING, HEAD OFFICE DATE :16.07.2014
BANGALORE

FRAUD AWARENESS TOOL IN CANARA VEHICLE PORTFOLIO

Of late there is steady growth under Canara Vehicle loan portfolio of the Bank
due to many initiatives undertaken in marketing, publicity and relaxations
permitted in scheme guidelines. Though it is a positive sign, the scheme is also
plagued by frauds committed by unscrupulous borrowers in collusion with
mainly vehicle distributors/dealers. There is also a steady increase in the
number of frauds despite issuance of fraud awareness series/ circulars by TRFP
Wing which was aimed at enhancing awareness level on frauds at grass root
level.

We are receiving reports on frauds committed through various modus operandi,

some of which are.

1. Collusion between the borrower and dealer where the loan proceeds are
misused.

2. Borrowers take delivery but do not register the vehicle with RTO

3. Borrowers produce fake/fabricated RC, Insurance copy with noting of banks

lien where, in reality the vehicle would not have been registered with RTO

4. Opening of fictitious accounts in the names of dealers with other Banks and
misusing the loan proceeds by crediting DD amount to these accounts.

5. Opening loan accounts through impersonation.

In view of the growing concern about the rampant increase in the above
incidents due to Callous /Laxity in processing and post sanction monitoring,
TR&FP Wing would like to share a simple TOOL to ascertain if the vehicle has
been registered with RTO when the borrower deceitfully submits the vehicle
documents to the branch.

Please send SMS and type the following “VAHAN<space> Vehicle Registration
Number” send the message to mobile no. 9212357123. Immediately a
message will flash with the details of registration, along with Road Tax paid
details.
(eg.VAHAN KA01MB7489)
This above exercise will help the branch in ascertaining if the financed
vehicle has been registered or not, so that timely action may be initiated.

Please note that the above tool is not the ONLY method of exercising
caution, Branches to be guided by circulars issued from time to time by
concerned wings.

S K VERMA
GENERAL MANAGER