Fraud cases can involve almost any kind of activity, from stealing money or assets to faking data. However, fraud is most often perpetrated when a person feels the need to deceive others for financial gain and the opportunity presents itself. According to criminologists, there are two key conditions for committing fraud: a person must be aware that a statement or claim is false or altered, and the intent must be to deceive for economic benefit.
In addition, the ability to commit fraud is influenced by a variety of factors, such as mental and physical health problems, poverty, and education levels. While there are no definitive reasons why some individuals are more susceptible to being victimized than others, experts agree that the lack of investment in countermeasures, a widespread culture of dishonesty and trust issues contribute significantly to the current global fraud epidemic.
The best way to protect your organization from fraud is to take prompt action when you become suspicious of fraudulent behavior, such as discrepancies in financial records or reports of unethical activities. This also helps preserve evidence and limit damage. It is also important to maintain confidentiality throughout the investigation, by limiting access to information and interviewing participants discreetly. It’s also a good idea to document all actions and findings accurately, so that your investigation is clear, supports accountability, and strengthens the company’s position in legal proceedings or disciplinary actions.
The final step in a successful fraud case is writing your report. Start with a summary of what you have found and a list of documents and other forms of evidence you reviewed. Then include copies of written and visual records, as well as links or information on where to find other forms of evidence you cited (such as video or audio clips). Make sure your report only contains facts and not inferences; doing so can help reduce the risk of a dispute about your conclusions should the alleged fraudster challenge them.
About the Author
