Fraud is a serious crime and can have significant consequences for your company. It’s important to have an effective fraud investigation procedure in place, so you can identify and take action against any potential fraudulent activity.
The elements of a fraud case include the deception, the property or money taken, and the victim’s reliance on the false statement. In order to be considered fraud, the statement must be a misrepresentation of fact that is either intentional or reckless. The person committing the fraud must also cause the victim to rely on it and be harmed by that reliance.
To qualify as fraud, the property taken must be movable, such as money or vouchers. The court will also assess the victim’s IQ to determine whether the deception would be obvious to him or her. In addition, the person committing the fraud must have a support to the deception that could be verbal or written documents.
As in any type of investigation, it’s essential to document everything you do during a fraud case. This ensures that there’s a clear audit trail and supports accountability. It’s also important to keep the investigation confidential. Limit access to information to those involved in the case, and use a secure, encrypted document management system that allows for role-based access. This will help protect the integrity of the investigation and prevent leaks. Also, it’s best to suspend any employees suspected of fraud while the investigation is underway.