Corporate Sector Fraud and Its Investigation
- June 8, 2020
- Posted by: Raghav
- Category: Investigations
Many reputable businesses, old and new have at some point in time been exposed to corporate fraud. The trouble with this is that fraud can persist for years and years before it is found out. The greater the number of people involved in the fraud the lesser are the chances of being ferreted out. Money laundering, tax evasion, and incorrect financial reporting can damage the reputation and existence of the company. This is why a fraud investigation exercise needs to be carried out at random intervals.
Once the investigation starts, the company soon gets to know what kind of fraud is happening, the people involved and the scale of the operation which has a direct effect on the company health. Highly paid corporate executives have in numerous cases been convicted of large-scale frauds and dished out lengthy prison sentences. Hence, a fraud investigation is not a frivolous matter and should be taken seriously.
Working of a fraud investigation
The preliminary step is to have protracted talks and sessions with employees who suspect that there is fraud underway. Details are asked for, and if the employee is above board, he/she will furnish the same without hesitation. The key area is highlighted, and it could be financial losses in previous years, missing documents and faulty balance sheets among others. The investigating team now starts to establish surveillance and gather important data.
Fraudulent employees, in true fashion, seek to commit fraud at times and situations where the chance of being observed is close to zero. Fraudsters are intelligent and tricky and they can be rooted out by covert surveillance, with the team using programs and technologies that have the highest levels of security.
As the old saying goes, “Once bitten, twice shy”. If the company calls in a fraud detection team, it means that corporate criminal activities have been committed. The best at owners of the company can do is to take steps to prevent this event from occurring again. Measures include thorough and stringent background checks, constant fraud surveillance as well as updated strategies for fraud prevention. The sad part is that most employees are honest and hardworking, and they have to bear intense scrutiny at all times because of a few people with evil designs.
Netrika Consulting has for many years, conducted thorough fraud investigations in India for famous and established businesses, alongside smaller companies as well. Their investigative team is truly competent and leaves no stone unturned in their efforts to weed out fraudsters, no matter how long it takes or how well they have covered their tracks.