Fraud and Forgery Investigation

Fraud and Forgery Investigation

Article: Workplace Fraud: Three Types of Employees

Lauth Investigations team of investigators investigate fraud of all types in businesses small and large.  In order to eliminate loss and compromise the spread of fraud in the workplace we recommend having preventive measures created.

In recent years whistleblowers have become the silent hero in the workplace uncovering massive fraud and criminal gangs. Whistleblowers confidential information can often launch an inside criminal investigation potentially widening an already intricate and complicated investigation.

Top level management and officers have a fiduciary duty to safeguard the organization’s assets and try to prevent fraud from occurring where feasible. Implementation of techniques and understanding and addressing the red flags discussed here should be a priority of every business.

Human Resource departments and management often overlook signs of fraud and forgery in the workplace due to limited resources for combating other matters.  Fraud can stem from an underground network outside your company and recruit employees for monetary prices quadruple their monthly pay.

HR teams understand the investigation team handling such Forgery or Fraud should not be a person who is too closely connected with the matter being investigated. Having inside investigators lacks credibility and will damage transparency. An outside consultant with appropriate expertise is recommended.

To ensure objectivity and a credible outcome, it may be preferable to use an outside investigator who does not have an ongoing relationship with the employer.

When considering an outside investigator determine the investigator’s likely effectiveness as a witness in the event of litigation.  Upholding legal compliance for investigation is critical and uphold to the employer’s standards and code of conduct.

The key to rooting out perpetrators is first discovering the type of fraud in the workplace.

Red Flags (RF) of Fraud in the Workplace:

  • An employee who is living beyond his/her means
  • Bullying, intimidation and excessive absenteeism
  • Sub-ledgers which do not reconcile with the general ledger
  • Excessive write-offs of accounts receivable
  • Unexplained cash discrepancies
  • Complaints from customers about billing or amounts owed
  • Complaints from vendors about payment
  • Rise in “soft” costs (i.e. advertising, consulting, etc.)
  • Voided, destroyed or missing checks

(PM) Prevention Methods

  • Set-up a confidential tip line
  • Good management oversight and internal controls setting prevention tone
  • Policies and Procedures that create fairness but prevention
  • Re-check excessive write-offs
  • Offer monetary rewards for tips
  • Implement anti fraud training
  • Create environment of transparency among staff and management
  • Keep checks and balances and pay equitable

Solution:

Lauth Investigations team will confer with Human Resources directors, CEO’s and any member of your team to detect the root of the fraud. We first gear our investigation with a strong and comprehensive analysis with our client then provide an amicable solution to your team and workplace.

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