Fraud can cost a bank a fortune in financial losses, at the very least, and cause it to collapse if the worst happens. Even small frauds hurt a bank's reputation for competence.
Fraud can hurt anyone. There is no guarantee that the best systems will work when a bank has a malicious fraudster on the staff or on the board. The only real answer is to take realistic precautions, be watchful and keep staff motivated in the right direction. Here are some basic dos and don’ts for the board that seeks to make a profit and play fairly.