Executive Fraud Blog

1. Surveillance
This method is legal if they do not invade a person's reasonable expectation of privacy. It is better to consult legal council and/or the HR department in order to predict the likely events.
Surveillance can be done either stationary/fixed point or moving/trailing. When using both methods it is important to keep a detailed record of all the activities (date, position, time, etc). Trailing has great rewards but has the danger of being caught leading to a higher failure rate. Electronic surveillance may be done by law enforcement using wire-tapping and video cameras.

2. Covert/Undercover Operations
These operations can be time consuming and costly so should only be used when: Large scale collusive fraud, other methods fail, solid predication, secretive in nature, and it complies with the laws of the organization. When an appropriate amount of information is collected it is necessary to inform the authorities.

3. Invigilation
Detailed records should be maintained before, during, after an intense examination period. During the examination there is a very strict adherence to controls. By comparing the results of the examination period to results before and after investigators are able to identify any unusual patterns that arise during the periods when observation is not intensely obvious. The duration of the examination should be at least 14 days and subject to management’s approval.

4. Obtain Physical Evidence
Best place to look for this type of evidence is a suspects computer. Things such as databases, emails, word documents that are stored on their computer require obtaining the legal rights to seize their PC. By checking the documents that are physically present in the suspects office there is a likelihood that you will find a starting point for the investigation.