What is a fraud investigation?
A fraud investigation determines whether or not a scam has occurred and gathers evidence to protect the victims involved if it has.
Fraud is defined as misrepresentation with the intent to deceive. For example, a company that makes a specific claim about a product (i.e. “This product removes 100% of stains guaranteed”) and knows that the product won’t work as promised, they are guilty of committing fraud. Fraud is a very real and costly issue that can cause loss of money, serious injury and in some cases even death.
What happens during a fraud investigation?
Fraud investigations usually begin with a meeting between the investigator and client. The person launching the investigation will need to explain why they suspect deceit and hand over any evidence they have to support their claim. Any good fraud investigator will use this initial information to search out more evidence and information. They may use surveillance techniques, asset searches, background checks, business investigations, employee investigations and other methods to find further information.
What are common types of fraud?
Insurance fraud: concerns individuals who make false claims to receive insurance money. Can also involve companies who refuse to honor legitimate insurance claims.
Corporate fraud: includes issues such as theft of information, damaged reputation concerns, and compromised customer information.
Identity theft: encompasses faulty loan or credit card applications, dishonest use of calling cards, false withdrawals from bank accounts, and using an alternate name to receive benefits.
Internet fraud: happens when criminals take advantage of unsuspecting victims through the internet. Can include theft of personal information like bank account numbers or credit card numbers and fraudulent transactions that result in significant loss of money.
Financial fraud: includes health care fraud, tax evasion, public corruption, telemarketing fraud and terrorist financing.
Corporate slip and fall: involves individuals who purposely plan a fall while inside a store to file a claim against the company.
Transit fraud: occurs when people on buses, subways or streetcars don’t remain seated or don’t hold the rails and then fall when the vehicle comes to a stop. Also includes individuals who allow their feet to be run over or stand in the way of a mirror and then try to file a claim against the transit company.
Mechanical repair fraud: when a mechanic calls for fixes that are overpriced or unnecessary.
Ticket fraud: occurs when a victim purchases illegitimate tickets for a sporting event or concert. The tickets may have already been used or don’t exist.
Expense claim fraud: involves employees who pocket runover business expenses. An example of this type of fraud is an employee who claims they stayed in a hotel costing $200 a night when in reality it was much cheaper and they pocket the difference.
Theft of inventory: involves employees who steal products or order more than the store needs and steal leftover product.
Do I need a fraud investigation?
If you are the victim of any of the scams above, you may lose a significant amount of money and sometimes your reputation. In order to prove that the fraud occurred, an experienced and qualified private investigator will be helpful in obtaining the evidence you need to receive the compensation you deserve.