If you are looking for a fraud investigation service, your company may be a victim of corporate fraud. It is important for you to not only detect the source of the fraud but also to identify its root cause and initiate corrective and preventive actions.

Fraud is an inherent risk in any organisation be it corporate, government, or not-for-profit. According to the 2022 Report to the Nations on Occupational Fraud by the Association of Certified Fraud Examiners, a typical organization loses about 5% of its annual revenue to fraud, with a median loss of US$117,000 (about ₹9.2 million). Nearly one-quarter of the frauds involve losses of at least US$1.78 million (about ₹141 million). There are various types of corporate frauds. Check out this exhaustive listing of various types of frauds classified into different categories.

What a fraud investigation covers?

A fraud investigation service covers the following aspects:

  • Establishing the root cause and control weaknesses that lead to the fraud
  • Assessment of the financial impact
  • Helping management with pursuing a criminal case against the wrongdoers
  • Establishing control measures, policies and procedures to prevent fraud in future
  • Set-up governance practices to monitor fraud risks

Steps for conducting a fraud investigation

When a company appoints a fraud investigating agency, the following steps help to achieve the set objectives:

  • Root cause analysis,
  • Interview of the suspects and witnesses,
  • Forensic auditing to gather evidence,
  • Submission of a fraud investigation report with opinions, conclusions, corrective and preventive actions.

Why should you engage external investigators?

By engaging external investigators for fraud investigation, you get a reliable partner to objectively and independently investigate the fraud and provide unbiased opinions and conclusions on the fraud free from conflict of interest and peer pressure.

How do we assist with fraud investigation services?

Our Fraud Investigation Service helps you identify the source of the fraud, evaluate the impact of fraud, identify the root cause of the fraud, and strengthen internal controls, policies and governance practices in order to prevent fraud in future.

As prevention is always better than cure, a Fraud Risk Assessment is necessary for your organisation in order to manage the risk of fraud in future and develop fraud reporting mechanics. According to the above-referred research, more than 20% of frauds are detected based on internal whistle-blowing. Our risk professionals can help your organisation in conducting Fraud Risk Assessments and prepare it to mitigate fraud risk by implementing various preventive and detective measures.

FAQ’s About Fraud Investigation Services

What is a fraud investigation service?

A fraud investigation service is a specialized service offered by professionals investigating fraud or financial misconduct allegations. This type of service is typically engaged by individuals, businesses, or organizations that suspect fraudulent activities within their operations or have been victimized by fraud. Fraud investigation services can help identify the extent of the fraud and gather reliable evidence. These services may include forensic accounting, data analysis, and background checks. The ultimate goal of a fraud investigation service is to uncover the truth and provide clients with the information needed to take legal action or prevent future fraudulent activities.  

How does the Fraud Investigations Service operate?

The Fraud Investigations Service investigates suspected fraud, corruption, and other economic crimes in various sectors. Fraud investigators work closely with law enforcement agencies and other relevant bodies to gather evidence and build cases against suspected offenders. They may also provide guidance and support to businesses and organizations to help prevent fraud and other financial crimes. They practice a variety of techniques to operate that include, 

  • Root cause analysis, 
  • Interview of the suspects and witnesses to solve cases, 
  • Forensic auditing to gather evidence, 
  • Submission of a fraud investigation report with opinions, conclusions, and corrective and preventive actions. 

What are some common types of fraud that fraud investigation services can detect?

Fraud investigation services can detect various fraudulent activities, including misappropriation, corruption, financial statement fraud, embezzlement, and asset misappropriation. Fraud investigators also look for red flags, such as irregular financial transactions or suspicious employee behaviour, to identify fraudulent activity. 

Can fraud investigation services guarantee results?

Fraud investigation services employ various techniques and strategies to reveal fraudulent activities, and the outcome of an investigation is always uncertain. The success of an investigation is dependent on multiple factors, including the scope of the investigation, the available evidence, and the level of cooperation from the parties involved. Fraud investigation services may provide a high level of expertise and experience, and still, they cannot guarantee a specific outcome. It is important to approach fraud investigations with a realistic understanding of the potential outcomes and to work with a reputable investigation service that can provide a thorough and professional investigation. 

What are the potential outcomes of a fraud investigation?

The potential outcomes of a fraud investigation depend on its nature and extent. If the investigation finds evidence of fraud, the perpetrator may be charged with a crime and prosecuted. The victim of the fraud may also be able to recover any losses through legal action or insurance claims. In some cases, the fraud may result in civil litigation, where the victim can seek damages. Also, the investigation may lead to changes in company policies or procedures to prevent future fraud. Finally, a fraud investigation can damage an individual’s or organization’s reputation, leading to financial or professional consequences.

How much does a fraud investigation typically cost?

The cost of a fraud investigation can vary widely depending on various factors, including the complexity of the case, the extent of the fraud, the number of individuals or entities involved, the geographical scope of the investigation, and the duration. The cost can range from a few thousand dollars for a simple case to hundreds or even millions of dollars for a complex, high-profile case. Also, the cost may include fees for forensic accountants, attorneys, and other specialists. Ultimately, the cost of a fraud investigation depends on the specific circumstances of the case and the resources required to conduct a thorough and effective investigation.