Lawmakers Cracking Down on Bank Fraud Tied to Online, Mobile Gambling

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The GOP Cracking Down On Bank FraudThe Justice Department has launched a federal investigation, researching consumer bank fraud in regard to many banks and payment firms turning a blind eye to unauthorized transactions.

It goes without saying that consumers rely on banks and payment firms to put safeguards in place to identify illegally withdrawn funds. But in the case of payday lenders, online casinos, and gun dealers many banks are ignoring their safeguards for their own financial gain.

The investigation is titled “Operation Choke Point” and it comes in response to a high volume of complaints of bank fraud and funds begin withdrawn without permission, Pymnts.com reports.

Since the investigation began in 2012, there have been 15 criminal and civil investigations, 50 subpoenas, and many business accounts forced closed due to their fraudulent behavior.

However, not all politicians are on board with Operation Choke Point. Some fear that legitimate business accounts are being closed without enough information. However, the fraudulent behavior has resulted in billons worth of losses and damages.

“There is an unacceptable level of collateral damage,” Rep. Bob Goodlatte (R-VA) is quoted. “There appears to be a disconnect between statements from top officials and what is happening in practice.”

The North Carolina Four Oaks Bank is one bank found to be allegedly turning a blind eye to the bank fraud. The total consumer loss at this bank alone was $2.4 billion dollars, of which the bank earned $850,000 in processing fees.

They settled for $1.2 million dollars but this is just one of many banks participating in bank fraud, published reports reveal.

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