The man allegedly used a temporary national identity number used by the bank's foreign clients to borrow money in their name and without their knowledge, newspaper Dagbladet reports.
The man reportedly used the numbers of people on their way out of the country, making it more difficult for the bank to contact them and follow up on the loans.
Information chief Hege Resvoll Skaug confirmed the story.
"The person reopened accounts of passive clients and took out loans in their name. The man now owes money to the bank. There has been misappropriation and the person has confessed. He has cooperated in the unraveling process," Skaug said.
Skaug would not comment on how many clients had been affected, or how much money the man had managed to steal in this way. According to Dagbladet, the sum was approximately NOK 3 million (USD 500,000).
The case has been reported to police and the employee was suspended from his middle management position in April.
Stine Barstad
Aftenposten English Web Desk
Jonathan Tisdall
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