A fraud case is a legal process for pursuing justice and punishment for those who perpetrate fraudulent activities. It involves several steps from securing evidence to conducting interviews. Each step requires a high level of care and attention to both legal compliance and ethical considerations.
Generally speaking, fraud is any activity that knowingly takes advantage of an information asymmetry between an individual or organization and the perpetrator. Some common examples include credit card fraud, phishing, and hiring scams. Fraud is a crime and, in some cases, can result in jail time or fines for the perpetrator.
In order for a claim of fraud to succeed, the victim must demonstrate that the perpetrator made a false statement that was material and that they knew it was untrue. They must also show that they relied on the false statement and suffered a loss as a result of acting on it.
The investigation process begins with securing physical and digital evidence. This can include documents, data, and witness testimonies. It’s important to secure these items as soon as possible and handle them in a way that preserves their integrity. For example, encrypting files or using a secure case management platform with role-based access can help keep information private.
Once the investigation is underway, make a list of individuals who could offer insight into the suspected fraud. Start with the suspect’s manager and then move on to colleagues, friends, and family members who may be able to shed light on the context and motivation behind the suspicious activity.