Fraud Investigation

When suspicions of fraud arise—whether through whistle-blower complaints, audit observations, or external alerts—the organisation must act decisively and with integrity.

Did you know as per the study conducted by ACFE, it is observed that average loss on account of fraud each year is 5% of the total revenue. Say, if the GDP of world is $ 100 trillion, fraud cases a loss of around $ 5 trillion globally.   

A fraud investigation serves not only to identify what happened and who was responsible, but also to determine why controls failed, how losses occurred and what actions are necessary to address and prevent recurrence.

Each investigation is tailored to the circumstances but typically follows a structured methodology, including:

• Initial scoping and stakeholder interviews to understand the context, allegations and reporting obligations
• Forensic review of financial data, contracts, email communications and system logs
• Interviews and fact-finding sessions with employees, vendors and other relevant parties
• Analysis of internal control failures, collusion indicators and red flags
• Documentation of findings, evidence preservation and support for potential legal or disciplinary actions

Investigations may involve asset misappropriation, bribery, procurement fraud, accounting manipulation, or conflicts of interest. In addition to determining the truth, the investigation provides the foundation for recovery efforts, regulatory compliance and reputational management.

Handled objectively and discreetly, a well-managed fraud investigation reinforces internal confidence and signals to external parties—including regulators and investors—that the organisation takes misconduct seriously and is equipped to respond