What Goes on During a Fraud Investigation?

Cropped image of young businessman examining Fraud blocks through magnifying glass on deskFraud is a complex topic to cover, but it can be broken down into bite-size nuggets of information that new investigators can easily grasp. If you are interested in enrolling in institutions providing, investigation training certificate there are hundreds of legal studies courses you can take online.

What is great about these courses is that educators designed them in partnership with colleges and universities across the United States. They also come in various accessible formats, such as text only, online presentations, DVD, and live lectures.

Moving forward with fraud, below are some key concepts and some of the important things to bear in mind when investigating one.

Confirming the fraud allegations

The first step in investigating fraud is determining the type of fraud committed. Understanding the kind of fraud would help a person plan the necessary steps in the investigation, as well as know who to report the fraud to (i.e. federal, state, or local departments).

In a private organization such as a non-profit firm, once should report incidences of fraud to its compliance or regulatory office. An investigative body will be formed and assigned to look into the allegation. This body, whether a third party or in-house, will be given access to all files related to the fraud incident.

Fact-finding mission

Establishing a timeline when the fraudulent act was conceived and committed will help investigators find out whether the circumstances surrounding the allegation are true.

This will also ultimately support the fact-finding mission, which will involve conducting numerous interviews and examining various records that the suspect had access to (i.e. due diligence).

Next appropriate actions

The severity of the incident committed by a person could either lead to their termination if working for a private company or organization or worse, jail time.

Before referring the suspect to authorities, the victim of the fraudulent activity, be it a company or individual, would have to implement steps in minimizing the risks of fraud.

These are just some of the basics of a fraud investigation. You will know more once you take courses or training on investigation.