What is a Fraud Investigation?
In the broadest terms, a fraud investigation is used to determine whether a person or party has been the victim of a scam by another person or party. Gathering evidence that a scam has taken place is the main focus of the investigation.
The term Fraud covers a variety of illegal activities, from insurance fraud to identity theft. A fraud investigation can be conducted in a variety of corporate situations.
Types of Corporate Fraud Investigation
Serious cases of fraud can cause a lot of damage to a business. Not only can fraud cause financial loss, it can also negatively impact the reputation of a business. Being proactive can help you uncover cases of fraud before they result in irreversible damage. Here is a breakdown of some of the common types of corporate fraud:
- Financial Reporting Fraud – This can include overstating or understanding revenue, earnings and assets. Withholding knowledge of potential liabilities is also a common occurrence in this type of fraud.
- Asset Misappropriation – The common types of asset misappropriation include skimming cash and misuse of company assets. Skimming cash before it ever enters into the businesses records is very difficult to track and uncover, which makes it a popular type of fraud. Asset misuse opens a business up to unforeseen liabilities.
- Intellectual Property Theft – The rise of technology has made stealing intellectual property and trade secrets a much easier endeavor for those engaging in fraud against an employer.
- Insurance Fraud – An employee or customers for commercial businesses who are hurt on the job or in your business location may seek payment when they have not actually sustained any injury. Gathering evidence of their actual physical condition can help you avoid payouts to this type of fraudster.
If you think you may have been a victim of fraud, but need assistance gathering evidence, contact B. Lauren Investigations today to discuss your case. Our team has years of experience with corporate fraud investigation and will use all the skills and tools at our disposal to help you.