A fraud case is an investigation into alleged fraudulent activities. Fraud can involve financial schemes, misappropriation of resources, and other types of deception. A fraud case can be a civil or criminal case. In a civil case, the loser is compensated for their losses, while in a criminal case the perpetrator may be prosecuted for a crime. Regardless of the type of case, effective fraud investigations are based on evidence—facts not opinions or inferences. This article explains how to gather and analyze the evidence needed to prove or disprove fraud allegations.
Begin by identifying potential sources of information. This includes policies, documentation, and other records, as well as interviewing key suspects, accusers, persons of interest, and witnesses. Obtain and secure digital evidence from suspected devices, servers, and networks, using specialized forensic tools to ensure data integrity. Analyze the evidence to identify suspicious patterns and anomalies.
Review documents, including invoices, receipts, and emails to identify potential red flags. This can include a pattern of overly large bank deposits, complaints, or other ominous behaviours. If you are able to secure access to an accused person’s personal email, reading their correspondence with others can also be beneficial.
Witness testimony is another important piece of evidence in a fraud case, but it can be challenged on several grounds. The most common is that the statement being disputed is not a fact but an opinion, or that it concerns something that will happen in the future and is not based on existing facts. Proving actual reliance can be challenging, and you will need corroborative evidence like texts or e-mails that show the speaker knew their statement was false at the time they made it.