Bank uncovers million-dollar fraud

An elaborate fraud involving "several million" dollars and a former ASB employee is under investigation by the Serious Fraud Office.

The bank said in a statement it had detected a serious case of fraud by an employee providing investment advice to customers.

"The offending involves 22 customers, and the bank has identified those concerned.

"The bank has already made restitution to customers where irregularities have been confirmed, and we will continue to work with them to ensure that no customer is adversely affected," the statement said.

The employee, who worked for the bank for more than 10 years, had been dismissed, and was now under investigation by the Serious Fraud Office.

"The fraud was elaborate and involved the investment adviser making fictitious investments on behalf of customers," the statement said.

It said the dismissed employee acted alone in committing the fraud.

- NZPA