What to Do If You Suspect Fraud in Your Company

In the business world, there are many moving dynamics virtually every hour. These dynamics must be scrutinized as best as possible to optimize operations. To do this effectively, you must work with a team you trust. While all will generally be well, sometimes, various mishaps could occur.

In the worst possible situation, you may even be confronted with acts of company fraud. Not jumping to conclusions just yet is crucial, as investigations must occur. Red flags will be present so that you can start your investigation from a certain point. Use the following as a guide to detect and locate company fraud.

Step #1: Filing Reports

Many companies are structured on a chain of command, illustrating a clear company configuration. Thus, no matter where you are on the said chain, you can easily find the professional to who you need to speak. If fraud is a big concern, file a report and ensure it gets sent to the requisite contact.

The report should contain elements of your suspicions initially. Even though you may be lacking in evidence first, make sure to note down your suspicions. Then, more prompt actions can be taken where necessary. Do let your accusations go awry, as this could backfire on you long term.

Step #2: Evidence Gathering

Fraud suspicions in any workplace must be substantiated with the right proof. Without this, you may be unable to confirm what you feel is happening in the business. As mentioned previously, accounting discrepancies are quite easy to gather. Another way to collect evidence is to go through the systems in place.

In current work operations, digital systems hold a ton of data which can be accessed in permission is granted. If you find any gaps here, include them in your report. Financial data is quite useful in fraud reporting, as it illustrates the crime occurring.

Step #3: Other Investigations

In a workplace, a third-party corporate investigation service may also be required if necessary. These outside investigators will conduct their inquiries to see what is going on. Those who are conducting fraud could be doing so in an adept way. Since you have other priorities, it may be best to leave the investigation in the hands of a reputable professional.

Step #4: Consulting Policy

An extension of the previous point concerns how policies in your business are made available. Specifically, policies should have unique sections dedicated to fraud and investigations. Consult these documents when you feel your suspicions are being proven valid.

There will be sections in these policies that delineate what should be done at the initial stages. Then, you will know who to report to and what should be included in the report. Sometimes, these policies must be updated to align with current operations. Make sure you note this down and report it to your supervisor too.

Step #5: Making Notes

Speaking of notes, there will come a time when you have to start noting down your suspicions. Your thoughts should clearly be illustrated, so you have something legible to present. Fraud can come about in many forms, all of which will require different note-taking. For example, discrepancies in accounting should be well-documented.

Usually, these bookkeeping documents clearly illustrate what kind of fraud is occurring. Theft in other circumstances can be a bit more difficult to note down. Whatever the case may be, it helps to keep a record of what your suspicions are. Then, your next move will be to locate the requisite proof.

Step #6: Keeping Confidentiality

You must ensure details do not spill out at all stages of your fraud investigations. If they do, you could put yourself, and others, at risk of dismissal. Unfounded claims of fraud in a company can be punished quite severely. As a result, maintaining a sense of Confidentiality is crucial for the short and long term.

Ensure your records are secured when you are finished looking into things for the day. Keep them with you, or store them in a safeguarded place. Usually, it is best to take these records home with you so that they remain out of sight.

Step #7: Reporting Results

After all, is said and done, you must present your findings to a superior. Discovered fraud should have a prompt punishment, as this can damage the overall company. Then, it is crucial to reassess your company’s fraud policies. Use the situation as a precedent to protect your colleagues long-term!