A fraud case is any activity that involves misrepresentation in order to make a gain. It’s a non-violent crime that can have devastating consequences for the people and business involved. It can be criminal or civil, depending on who makes the complaint and how the alleged fraud was committed. It is a difficult type of investigation to conduct as it requires careful, discreet and documented investigative work.
Whether it’s employee theft, embezzlement, bribery, wire fraud or any other fraudulent scheme, it is important to investigate thoroughly and quickly once a suspected incident has been reported to you. If you don’t report it right away, you risk losing the opportunity to recover losses, avoid legal action and improve your risk management practices.
The first step in a fraud investigation is gathering the evidence, which should include a copy of any document containing a potential misrepresentation. Authenticate the document by showing it to its author or someone with direct knowledge of the preparation, submission, or receipt and preserve the chain of custody. Also, collect all related documents that could be relevant for your investigation including phone records, account information, statements and trade confirmations, and any exchanges of digital currency.
To prove a civil fraud case, you will need to show that the person you are suing made a material misrepresentation, that they knew it was false or were reckless as to its truth and that you reasonably relied on it and were damaged as a result. The most serious cases of fraud will require a civil judgment against the alleged perpetrator or company, compensation for any lost money and corrective measures to prevent future incidents.