Fraud cases
are unique in the sense that no other crime requires a more circumspect fraud
investigation. Investigators always need to be clear about the questions they
need to put forth, whether you consider ID theft, insurance fraud, identity
fraud or government benefit fraud.
Where it
occurred is equally important as well as whether it was perpetrated online,
using a phone or through the official postal service. Another important aspect
to consider while conducting a fraud investigation is whether it occurred in
another jurisdiction or country and the manner in which it has occurred. Be
clear about whether it is an organized fraud or a quickly conceived confidence
game. Consider if the financial institution or agency involved as the caretaker
took adequate precautions.
For fraud
investigations to be successful, two qualities that are prevalent include
determination and consistency. At the time of fraud investigations, these
attributes need to be tested across time. Investigators need to rely on some
basic steps to ensure that the case progresses.
A fraud investigation must be efficiently carried out to prevent further victims from
falling into the snare. Scammers can initiate financial havoc on the person or
company, losing you millions of dollars in the bargain.
- Identify the Fraud
The initial
stages of fraud investigation are always critical– one can build an
investigative hypothesis used to launch the exploration. The first step in
fraud investigation is to assess the kind of fraud that was carried out. So
many different types of frauds are there and scams can range across a wide
spectrum. As a fraud investigator, assessing the category in which the fraud
has occurred will help to find the right contacts to assist the process. Fraud
crimes can fall under local, state or federal agencies. Each provides critical
expertise and important data to become part of the fraud investigation team.
- Create A Fraud Investigation Plan
Creating a
plan is critical and often not considered as part of the fraud investigation.
It takes time, but investigations need to be oriented and organized around
documents influencing fraud cases. What is measured is tangible. The fraud
investigation team must locate chronological events associated with real fraud.
Steps can uncover victim vulnerability and how culpable the crime is.
Identification and documentation of missing ends in the witness's narrative is
only possible when the fraud investigation plan is in place. Scammers commit
fraud while investigators look at the timeline and corroborate the points at which the scheme was carried out.
- Get Inputs from the Victim
The fraud
investigation must make every effort to check what is important and conducting
background checks is a good start. Due diligence can yield rich dividends and
once the interview is started with an open ended query, rich details can be
obtained as a result of this. As cases are complicated, details cannot be
missed out on. Details are critical in a
fraud investigation. Key questions that need to be asked are when, where, what,
how and why. How did the loss get discovered and how was the notification made?
Follow up points for the fraud investigation must follow. Contact and interview the victim to see if
additional evidence is in place. Fraud investigations involve the critical step
of collecting and preservation of evidence. Copies of credit statements,
emails, phone records, social media posts and bank accounts are critical for
collection, especially if the crime was committed using the internet.
