Bank employees arrested for siphoning off customers's funds

Abdul Khalik, The Jakarta Post, Jakarta

If choosing not to have an ATM card when opening a bank account is considered a way to save money, in that withdrawing money for impulsive shopping would be avoided, two bank employees may have proven the theory wrong.

The Jakarta Police revealed on Monday that they had arrested two employees of Lippo Bank in Cideng, Central Jakarta, for allegedly withdrawing, little by little, money from customers' accounts using savings books and illegally issued ATM cards.

"The two chose inactive accounts on which the owners have not applied for ATM cards, which would have enabled the owners to check their balance regularly," city police spokesman Sr. Comr. Tjiptono explained.

The two have been identified as Then Po Min, 29, and Donny, 28.

"They were authorized to make ATM cards at the bank branch, and they had data on account holders who hadn't updated their bankbooks for years. So, they could easily make cards without the owner's permission," said Tjiptono.

The two then allegedly made fake personal identification numbers without their superior's knowledge. Since December last year, the two allegedly withdrew Rp 164 million (US$16,000) from one bank account.

Unexpectedly, the owner discovered a discrepancy and reported it to the bank.

An internal check was made and the result was reported to the police.

The two suspects were arrested at their workplace on Friday. Five others have been questioned in connection with the case.

Both suspects may be charged under articles 49 and 50 of Law No. 10/1999 on banking and articles 362 and 374 of the Criminal Code on embezzlement, which carry a maximum punishment of 15 years in prison.

Tjiptono said the police had never handled such a case before.

"We are now trying to investigate whether similar cases have occurred at other banks as we suspect," he said.

Tjiptono added that the police had coordinated with Bank Indonesia and would seek out advice from banking experts.

While acknowledging that banking crimes were becoming more sophisticated, noted banking expert Fendi Susiyanto has advised customers to check their accounts regularly.

"Many owners leave their accounts unchecked for months, even years. These accounts are prone to be misused by bank employees. In fact, trillions of rupiah in customers' money could be at stake if this type of crime continues," he told The Jakarta Post.

Fendi urged banks to improve internal control so that malfeasance on the part of employees could be avoided. "Customers will lose their trust in banks."