Does your company have a crisis plan that be put into action quickly if internal fraud is suspected?
Having a checklist of what you’re going to do if you discover fraud – or get notified by a whistleblower – is necessary.
External auditors only locate about four to five per cent of frauds and about half of the theft cases are found out through a tip – or by accident.
Talking to your insurance company is one of the first things to do. Inform them there’s a potential problem in terms of fidelity bond or theft insurance. Doing so will help ensure you’re not charged with late notification penalties.
You should have a designated team in place to investigate reports of fraud. Also consider whether the team should be made up of internal or external forensic accountants – or a mix of both – and how your company’s legal representation will fit in.
An investigation, especially one involving collusion, will be very detailed, and everything has to be kept confidential. Using an external team of investigators with specific fraud experience is ideal. They know exactly what to look for, whereas an internal team of accountants may lack the required training and experience.
Without proper training mistakes can be made that will sink a case against a fraudster, such as improperly imaging a computer after it’s been taken from an employee. Evidence must be preserved precisely so it can be presented in court.
A team like ours brings experience and knowledge to an investigation, including computer forensics, data analytics, and mobile phone analytics.