Do you suspect a fraud has occurred?
The initial stages of a fraud investigation are incredibly important.
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. |
