The lack of information technology standardization is costing Greek banks dearly, according to a post by Greek daily newspaper, Kathimerini. Fraudsters are able to utilize forged documents in order to secure loans from banks eager to lend money. The concept of the credit score is non-existent in Greece, where the use - and abuse - of credit is a new experience, that dates back as recently as the introduction of the euro. Loan-takers often default on loans and despite being harassed by private debt-collecting companies they are rarely ordered to pay back the loaned amount. Additionally, there is no education of, nor awareness by the public about the proper use of credit and credit lines. Many people live in debt stretching beyond their living means, hopping from credit line to credit line and maxing out their credit cards. This financial irresponsibility can be addressed and improved by a properly-written guide to financing, tailored to the Greek population’s mentality and cultural footprint.

Below is the article from Kathimerini:

Banks have lost more than 500,000 euros so far this year by issuing loans to fraudsters, according to police records seen by Sunday’s Kathimerini.

The loans have been granted to people who have produced forged tax declarations or have taken advantage of the tax office’s online system to inflate their salaries.

Officers told Kathimerini that it is relatively easy for criminals to forge tax documents and take advantage of banks.

Equally, according to the police, fraudsters have found ways to bypass security procedures to obtain identity cards and passports with other people’s details, which they then sell on the black market.

Criminals get past the system by paying drug addicts for their identity cards. They then use the cards to obtain other documents, such as birth certificates, which they can use to apply for passports.

Police said they have obtained vital information about the process following the recent arrest of a 56-year-old man who is due to stand trial soon.