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Do you suspect a fraud has occurred?
The initial stages of a fraud investigation are incredibly important. 
07/08/2018
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Organisations that fail to observe the correct protocols are likely to encounter significant problems.

Doing the wrong thing, however well-intentioned, may:

  • prevent discovery of what happened
  • slow or stop recovery of losses
  • remove the full range of sanctions available
  • leave an organisation open to legal claims under data protection, human rights and employment law.

If you suspect a fraud is underway, before you do anything, speak to a professionally-qualified counter fraud specialist.

As soon as there is a suspicion of fraud, substantiated by at least one reliable piece of information, you should:

Do

Get professional counter fraud advice. A quick phone call as soon as you suspect something will help avoid costly mistakes.
Refer for specialist investigation as soon as there is a suspicion of fraud which is substantiated by at least one reliable piece of information.
Leave all response and recovery options open. An investigation may reveal the fraud is much bigger than initially suspected.
Securely preserve electronic evidence. Lock devices away somewhere secure.
Make a note of individuals that may be involved.
Leave suspected parties in post while investigations continue, unless there is a risk of significant ongoing financial losses.
Establish a small and confidential working group to contribute to a future investigation.
Ensure those undertaking an investigation have the necessary counter fraud skills, expertise and experience.

Don't

Assume there is necessarily sufficient expertise in the organisation. Most organisations have little if any counter fraud expertise. 
Assume there is an innocent explanation for suspicious activity/transactions. Start investigating until you have sought specialist advice.
Decide on a response and recovery option before an investigation has revealed the nature and extent of what has happened.
Access electronic evidence, such as computer files and phone records.
Approach individuals that may be involved.
Suspend people who may be involved before an investigation concludes, unless there is a risk of significant and ongoing financial losses. People aware of investigations may attempt to obscure the truth.
Discuss any suspicions or work underway to prepare for an investigation.
Allow an investigation to be undertaken by staff without specialist counter fraud skills, expertise and experience.

Contact us

Jim Gee
Jim Gee
Partner, Head of Forensic and Counter Fraud
London