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ASB Bank is insisting it has upgraded security so ponzi schemes like Stephen Versalko's don't happen again.
The bank's former investment advisor has been sentenced to six years in jail , with a minimum non-parole period of four years after stealing almost $18 million from wealthy ASB clients over nine years.
Versalko sent the clients statements and regular interest payments to avoid suspicion.
But one eventually twigged to the scam after watching a documentary on US fraudster Bernie Madoff.
ASB says within hours, the offending was confirmed, the matter was reported to the Serious Fraud Office and Versalko was dismissed.
The bank says it has since introduced additional practices to protect its customers
However business commentator Brian Gaynor says the fraud can only be related to the bank's internal security systems.
He doesn't think clients would have been sceptical about investing with a bank executive who sent out statements on an ASB letterhead.
Meanwhile, the SFO is pleased with the sentence handed to Versalko.
SFO director Adam Feeley says although it was a relatively straightforward crime, it took time to make sure they had enough hard evidence to prove the charges.
He says it sends a pretty serious message to potential fraudsters about the severity of punishment that will follow these kinds of crimes.
Feeley says it's also clear investors must watch for warning signs of fraud.
