What is the result of teller theft of skimming for financial institutions?

The result of teller theft or skimming for financial institutions primarily involves significant financial losses due to unrecorded transactions. This type of fraud typically occurs when a teller manipulates transaction records to divert funds for personal gain without properly documenting those transactions in the financial institution’s records.

When skimming is successful, it leads to a direct loss of funds for the institution because the money that should have been accounted for and tracked is instead misappropriated. These losses can be substantial, affecting not just the institution’s bottom line but also its operational integrity and profitability over time. Additionally, managing and recovering from such incidents often incurs further costs related to investigations and potential compensatory measures for impacted customers.

Enhancing security protocols and audits may be a response to such thefts, but the most immediate impact is the financial loss that results from the skimming activity itself. Thus, the option regarding significant financial losses accurately reflects the repercussions financial institutions face in these cases.