Fraud cases involve a thorough, painstaking investigation to ensure that the apparent perpetrator is truly guilty of the alleged actions. This process requires specialized expertise in areas like HR, IT and legal. Outside consultants can help manage the complexities of gathering evidence, uncovering suspicious patterns and identifying root causes. They can also assist with identity verification to avoid tainted trials or settlements.
The first step in fraud investigations is to collect initial information from the whistleblower or auditor who uncovered the suspected fraud and interview key suspects. This includes the person who committed the fraudulent activity, their manager, and the suspect’s colleagues. If the alleged fraud involves a criminal act, the investigator will work with law enforcement to file charges.
Once the fraud team has gathered enough information, they should be able to make a decision about whether or not to report the alleged crime to law enforcement or internal authorities. They can then move forward with the next steps, which may include assessing the alleged fraud’s financial impact and preparing an action plan for prevention.
If a civil case is successful, the victim of the fraud can sue for damages, which typically include restitution and monetary compensation. However, in order to win a civil fraud claim, the victim must prove that the defendant intentionally faked a fact, and that they caused the victim to act on that false fact. In addition, the victim must have sustained real and quantifiable damage resulting from their reliance on that false fact.