Wells Fargo accounts scandal.
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Objectives of this literature review
The objective of this literature review is to enable other banks and banking service providers to identify activities they should avoid. The banking service provider should know that all incentive systems which are not properly designed are at a greater risk of producing adverse results. Even though all operations in business have been decentralized, centralized internal systems should be implemented. A red flag should also be raised for any unit leader in the business who is not transparent. Any employee found using the employee hotline in reporting any wrongdoing should be protected.
This scandal emerged through the creation of many fraudulent checking and saving account on behalf of wells Fargo clients event without their consent. This news became clearly known after some of the regulatory bodies fined this company a combination of US$ 185 million, which was as a result of those illegal activities. Wells Fargo clients had already begun to notice this fraud after receiving unexpected debit or credit cards of credit and unanticipated fees being charged.
This literature was obtained from records and witnesses from clients who were being overcharged and forced to pay unanticipated fees to this bank. The bank’s reputation has then tarnished this fraud which was widespread, leading to the revelation of much more fraudulent activities which were being employed. This literature brought more focus and clarity of what banking service providers does, which can bring possible problems to them. This also enhanced broadening of knowledge based on banking services. This is a scandal which was known by most people worldwide, and this would lead to a change of behaviour on any other banks who had been using these methods to still from their customers.
References
Wells Fargo fake accounts scandal. (2017, March 15). Retrieved from https://sevenpillarsinstitute.org/wells-fargo-fake-accounts-scandal/
