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Internal Fraud Investigation Case Study: How Millions Were Recovered
Posted By Victor Gan
Our team of investigators were put to task on a high-value internal fraud. Our client suspected that a majority of the workforce, including members from the Management team and external parties were involved.
Strategic discussions took place off-site. We then ‘ambushed’ (appeared without notification one fine morning) the worksite. Instantly, we replaced the security team with a temporary one, secured the site and ran concurrent interviews with individuals who were high on the suspect list. Majority of the employees were interviewed on the same day and we have translators readily available in our team of investigators.
Our investigation was conducted using the non-confrontational method. On that day, we obtained admission from the main suspect, leading to termination of employment. Our key learnings from this matter:
Align your plans with all members of the investigation team, everyone needs to know their roles.
Consider legal implications, rule out possibilities of duress and false imprisonment. This can be done through proper questioning. We even mapped out the interview room as part of our interview notes.
Investigate with a proper technique. The traditional method of indirectly threatening the employee won’t work. Workplace investigation is an art, get trained.
Ensure that written statements are taken and signed for authenticity. Don’t miss anyone out, even if it may be trivial at the time of investigation.
Prepare an investigation report, outlining every possible aspect of the case. Write so that a stranger can understand.
Consult legal assistance. There are criminal aspects involved, get advise and act accordingly – don’t be caught off guard.
At the end of our investigation, we obtained clear evidence that employees of the Company had been stealing for the last couple of years. Majority of the employees were involved (whether directly or indirectly), the others, were threatened to be quiet. The fear of retaliation was apparent, especially amongst lower rank employees.
We recommend for companies to be bold in encouraging employees to speak up. Utilise readily available tools and create a culture of openness regardless of seniority. This could save you millions.