Fraud is misrepresentation with the intent to deceive. For example, if a company makes a specific claim about a product and knows it won’t work as promised, they are guilty of fraud. Fraud is a very real and costly problem that causes loss of money as well as serious injury and sometimes even death.
What Happens During Fraud Investigations?
Fraud investigations begin with a meeting between the investigator and the client. The person launching the investigation explains why they suspect deceit and hands over any evidence they have supporting their claims. A good fraud investigator will use this initial information to find more evidence and information. They may use surveillance, asset searches, background checks, employee investigations, business investigations, and other methods to do this.
Common Types of Fraud
Insurance Fraud
Insurance fraud involves individuals who make false claims to receive insurance money, or insurance companies who refuse to honor legitimate claims.
Corporate Fraud
Corporate fraud includes issues like theft of information, compromised customer information, and a damaged reputation.
Financial Fraud
Tax evasion, public corruption, health care fraud, telemarketing fraud, and terrorist financing all fall under Financial Fraud.
Identity Theft
With identity theft, investigators will look for faulty loan or credit card applications, false withdrawals from bank accounts, dishonest use of calling cards and using an alternate name to receive benefits.
Internet Fraud
Internet fraud occurs when criminals attempt to take advantage of victims via the internet. This includes theft of personal information or fraudulent transactions that result in a significant loss of money.
Corporate Slip and Fall
This type of fraud involves individuals who purposely organize a fall while inside a store to file a claim. They will go as far as to throw water on the floor to ensure a slip.
Transit Fraud
This kind of fraud occurs when passengers on buses, subways, or streetcars don’t remain seated or hold rails and fall when the vehicle stops. Individuals may also allow their feet to be run over or stand in the way of the mirror.
Ticket Fraud
With ticket fraud, a person will purchase tickets for a sporting event or concert that aren’t legitimate. Often these tickets have already been used or don’t exist.
Mechanical Repair Fraud
Regularly a mechanic will call for fixes that are overpriced or not necessary.
Expense Claim Fraud
When employees pocket run over business expenses, they are committing fraud. Frequently, individuals will claim to stay in hotels costing $200 a night when in reality, they stay in cheap motels and keep the remainder of the money.
Theft of Inventory
With inventory theft, investigators will investigate whether employees steal products or order more than the store needs. Sometimes, employees will claim products are expired when they aren’t so they can take the items home.
You can read more about fraud here: The 10 Most Common Types of Fraud.
Why Do I Need a Fraud Investigation?
If you are the victim of a scam, you may lose significant amounts of money and, in some cases, your good name. Proving a fraud occurred, however, can be complicated and evidence you gather on your own may not be admissible in court. A qualified, experienced investigator helps you receive the compensation you deserve.
Fraud Investigation Articles
- Are Employees Using These Sneaky Tactics to Defraud Your Business?
- Real Estate Fraud Is On the Rise: Protect Yourself
- Top 10 Resources Every Victim of Identity Fraud Should Have
- How a Private Investigator Can Help With a Fraudulent Workers Compensation Claim