Finding fraud in your company’s financial records can be very distressing. It may even be tempting to ignore the problem, especially if you suspect you know who’s responsible or if the embezzler has already disappeared with the money, making it impossible to recover what was stolen. However, ignoring the situation will only make things worse.
What is a fraud investigation?
This term means different things in different industries. A fraud investigator, or detective, typically works for an insurance company or a government entity and is responsible for determining if a claim is legitimate. If it isn’t, they determine how much money needs to be reimbursed to their company or client. Fraud investigators are often asked to determine whether there was a violation of criminal law, as well as violations of civil law such as laws against employment discrimination or unfair business practices.
Why should you consider it?
Businesses need fraud investigation services for a variety of reasons. Perhaps they’ve suffered fraud that needs resolution, or they want to investigate whether someone at their company is committing fraud. No matter why you need it, hiring professional investigators can be costly. If you decide not to go with a professional service, there are many things you should consider first. Let’s look at what goes into each option and determine which is best for your business.
What are your options?
To investigate a business claim, you have two options. You can consult a company or individual specialising in investigations or get involved yourself. If your claim is large enough, it’s best to hire an independent investigator. Use one of your employees with a business background for more leverage and less cost if it’s small. Either way, keep in mind that either route will likely involve out-of-pocket expenses because of investigation fees and charges associated with legal claims
Several situations call for fraud investigation services, and they differ in terms of what you’re trying to uncover. For example, you may have been accused of committing financial or accounting fraud at your workplace and need an unbiased third party to investigate these claims. In other cases, you may be an entrepreneur who wants someone else—namely someone with accounting expertise—to review your company’s accounts; ensure there aren’t any financial irregularities or suspicious trends.
A legal investigation is a form of legal service that helps businesses ensure they’re operating with integrity and taking all precautions necessary to avoid or identify fraud.
Depending on your company’s needs, you may be able to use a variety of methods, such as internal audits, fake tax fraud, financial checks, and forensic investigations.
A financial investigation is a comprehensive process that includes forensic accounting, surveillance, and undercover work. The goal of a financial investigation is often criminal prosecution, but it can also be used as part of an internal audit or compliance program. In general, there are primary types of financial investigations: civil audits, criminal prosecutions, and internal investigations. These kinds of studies all serve different purposes but share certain characteristics—such as undercover work—and all focus on identifying fraud to prevent further losses.
Business fraud investigation services provide several ways organisations can protect themselves from potentially harmful financial losses. An investigation can not only find evidence of fraud but also help management decide whether or not they should take legal action against their employees or partner companies to stop these fraudulent activities and seek compensation for damages.