Hello,

We noticed you're browsing in private or incognito mode.

To continue reading this article, please exit incognito mode or log in.

Not an Insider? Subscribe now for unlimited access to online articles.

Simson Garfinkel

A View from Simson Garfinkel

Gambler Bilks Bank

Kim David Faithfull, 36, of Karratha in Western Australia, was sentenced on Friday for stealing $13Million (AUD19 million) from customer account to satisfy his online gambling habit, according to this article by John Leyden in The Register.According to the article,…

  • October 22, 2003

Kim David Faithfull, 36, of Karratha in Western Australia, was sentenced on Friday for stealing $13Million (AUD19 million) from customer account to satisfy his online gambling habit, according to this article by John Leyden in The Register.

According to the article, “Despite the size and regularity of the thefts, regular audits by the Commonwealth Bank failed to unearth anything suspicious. By early this year, Faithfull had lost AUD8 million. Over the next six months he tried to dig himself out through a series of increasingly desperate bets that saw him squander another AUD11 million.”

The scheme was only revealed after Faithful turned himself in on August 2nd.

One has to wonder about this bank’s internal controls, or what happened to the depositors who had their accounts bilked. It just goes to show you that you don’t need to engage in online banking to be victimized by the new banking systems. And it remains the case, even today, that insiders are still the biggest threat.

Want more award-winning journalism? Subscribe to Insider Plus.
  • Insider Plus {! insider.prices.plus !}*

    {! insider.display.menuOptionsLabel !}

    Everything included in Insider Basic, plus the digital magazine, extensive archive, ad-free web experience, and discounts to partner offerings and MIT Technology Review events.

    See details+

    Print + Digital Magazine (6 bi-monthly issues)

    Unlimited online access including all articles, multimedia, and more

    The Download newsletter with top tech stories delivered daily to your inbox

    Technology Review PDF magazine archive, including articles, images, and covers dating back to 1899

    10% Discount to MIT Technology Review events and MIT Press

    Ad-free website experience

/3
You've read of three free articles this month. for unlimited online access. You've read of three free articles this month. for unlimited online access. This is your last free article this month. for unlimited online access. You've read all your free articles this month. for unlimited online access. You've read of three free articles this month. for more, or for unlimited online access. for two more free articles, or for unlimited online access.