Monthly Top 5 ORX News Losses 2018

  • 7 March 2018

Each month, the ORX News team publish a round-up of the five largest operational risk loss events recorded in the ORX News database.

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The operational risk year to date

Summary of distribution, frequency and severity of ORX News event digests.

February 2018

February's Top 5:

1. Punjab National Bank – $1.98bn

Punjab National Bank discovered it had been defrauded of USD 1.98bn in a letters of undertaking fraud involving bank employees and diamond businessman Nirav Modi.

2. Metlife – $510m

Metlife reinstated USD 510m of pension reserves it had previously released in the 1990s after it found it had failed to make adequate attempts to contact pensioners before releasing the reserves, leading to it missing payments for 25 years.

3. Vanquis – $239m

Provident Financial subsidiary Vanquis reached a GBP 170.8m settlement with the FCA over its failure to disclose the price of an add-on product it sold.

4. BitGrail – $204m

Italian cryptocurrency exchange BitGrail claimed it had lost 17 million Nano coins in a cyberattack.

5. Lending Club – $125m

P2P lender LendingClub agreed to pay USD 125m to settle class action claims it misled investors about its compliance practices.

Download February's Top 5

January's Top 5:

1.   US Bank – $608m

US Bank has provisioned USD 608 million for investigations by US authorities into the bank’s AML compliance programme in relation to a USD 2 billion fraudulent payday loan scheme by businessman Scott Tucker

2.  Coincheck – $531.9m

Cryptocurrency exchange Coincheck lost around JPY 58 billion worth of NEM coins in a hack on its hot wallet.

3.  Postal Savings Bank of China – $488.5m

Postal Savings Bank of China loses CNY 3.09 billion through embezzlement and fines relating to illegal bill trading, including the misappropriation by internal staff of wealth management funds totalling CNY 3 billion and a fine of CNY 90.5 million by the CBRC.

4.  Rabobank – $372m

Rabobank announced that it provisioned EUR 310 million in Q4 2017 in anticipation of a settlement with the US DoJ over suspected violations of AML regulations.

5.  Pershing Square – $193.8m

Pershing Square Holdings agreed to pay USD 193.8 million to settle two shareholder class action claims that the fund manager, in partnership with Valeant Pharmaceuticals International, engaged in insider trading during the attempted hostile takeover of Botox manufacturer Allergan in 2014.

Download January's Top 5