A fraud case is a complex process that requires careful attention to details and an understanding of legal compliance. It begins with a thorough review of records, documents and electronic data and includes interviews with people who may have knowledge of the apparent fraudulent activity. Each step must be done in a way that ensures confidentiality and adheres to strict protocols.
Fraud is a criminal offense and involves an intentional misrepresentation of fact for financial gain. It also requires the perpetrator to have acted in reckless disregard for the truth of the misrepresentation and that the person on the receiving end relied on it to their detriment. There are various types of fraud, including embezzlement, credit card fraud and wire fraud. The latter involves using any type of telecommunication to commit a fraud against an organization or individual.
Regardless of the type of fraud, it is important to assess whether there is enough evidence to justify an investigation. This should include evaluating whether the report was made in good faith and determining whether there is data to back up the allegation of fraud or theft. It is also important to determine whether the alleged crime violates a law or policy and, if so, which one.
Next, make a list of people who could provide insight into the matter. This should include the person who reported the suspected fraud and the accused person’s manager as well as colleagues, friends and family of the suspect. Review all relevant documents and retain copies. Keeping documents in one place allows investigators to quickly refer back to them and reduces the risk of losing originals during an investigation.