7-34 Employee fraud is a type of operational risk to a financial institution.

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Employee fraud, also known as insider fraud, is a type of operational risk that financial institutions face. It occurs when an employee of the institution engages in fraudulent activities such as stealing funds, manipulating records, or misusing customer information for personal gain. It can result in financial losses, damage to the institution's reputation, and legal and regulatory penalties.

7-34 Employee Fraud Is a Type of Operational Risk to a Financial