An overview on fraud investigation!
- July 16, 2020
- Posted by: Raghav
- Category: Investigations
We are living in a world where technology has knotted everything and everyone together. This has, in turn, opened doors of fraud and scams for many hackers and other such dubious people. No matter how robust protection steps are taken, hackers find some or the other way to do fraud and make people lose their money. When such frauds occur companies, corporates, various government, and non-government organization needs to get fraud investigation done.
What is a fraud investigation?
Fraud investigation basically refers to the process of examining whether the scam or fraud has taken place and collecting evidence to save the interest of victims involved.
For a better understanding of fraud investigation, let us understand what fraud is. Fraud can be defined as misinterpretation or misappropriation of things with an intent to deceive people. For example, if certain companies make some claims about features of their product and the product does not work in a similar way, then it is a fraud with its consumers. Fraud can make people lose their money, causes injury or it can even lead to their death. Fraud investigation can be both internal and external to find the real culprit behind the act of fraud.
What to expect during the process of fraud investigation?
The kind and intensity of fraud will determine the entire process of fraud investigation. It begins with the meeting of the fraud investigator and the client who is suspecting fraud in his or her organization. In that meeting, the client gives detailed information about his work, his company and why he is suspecting any deceit or fraud in his organization. It is this meeting when he handovers all the evidence supporting his suspicion. An efficient and experienced fraud investigator will use those initial evidence and information to further investigate the case to find more information, evidence and finally reach a satisfactory conclusion. Fraud investigators can use a plethora of tools to like surveillance, search raid on various company’s assets, background checks of both prime and secondary suspects, investigation of the employees, investigation of the business and other such methods of finding evidence.
Some common type of frauds that usually occur in a company!
- Insurance fraud! Insurance fraud is one of the most common types of fraud that usually occur in any county with a robust insurance system. Both people making false insurance claims to the insurance company and insurance company being reluctant to honor the genuine insurance claim is counted under insurance fraud.
- Corporate fraud! Corporate fraud is an elaborate term that includes many things. It involves a breach of data security, theft of information from the company, theft or compromise of customer’s information from the company’s database or any other kind of damage in the reputation of the company.
- Financial fraud! Financial fraud again involves a plethora of activities such as evasion of tax, corruption, fraud in the health care sector, fraud through telemarketing and terrorist funding.
- Identity theft! We are living in a world where many people are under the danger of identity theft. It is another most common crimes taking place across the globe. Identity theft includes things like applying for faulty loans or credit card applications, unauthorized withdrawal from bank accounts, fraudulent use of calling cards, using the identity of another person to receive added benefits, etc.
- Internet fraud! Another common type of fraud in the 21st century is internet fraud. Two to three decades ago nobody had heard about this type of fraud but now it has become one of the most common types of fraud. In this type of fraud, a person tries to take advantage of other people via the internet. It can either be theft of identity, theft of personal information, theft of financial information or any other such thing which can make the victim lose their money or reputation in the society.
- Corporate slip and fall fraud! This fraud can be understood as throwing water on the floor purposely to ensure a slip over it. Corporates purposely plan a downfall of their store in order to make huge insurance claims for their company.
- Theft of inventory! Another common type of fraud usually taking place in stores is the theft of inventory. It is a type of fraud where employees steel products from the store, claim them to be expired and take them home or order more products than the store needs.
Why a company needs a fraud investigation?
If a company is a victim of a particular kind of scam, it will not only lose money but it will also lose its reputation and trust in the business circle. If you try to investigate the fraud all by yourself, you may not be able to collect all the evidence or the evidence you collect may not be permissible in the court. It is the time when you need a qualified, efficient and experienced investigator who not only investigate your case but also helps you in getting the compensation you deserve.
To know more about fraud investigation services, you can get in touch with Netrika Consulting India and find the best suggestions and strategies for your company.