Ways to Detect Fraud within a Company

In order to talk about the most effective ways of fraud detection can be detected within a company, we must start by asking ourselves what fraud is. We will say in very simple terms that fraud is a crime. A crime specifically defined as the abuse of position, misrepresentation, or injury done to another person’s rights for personal gain. This means that all fraud represents an act of deception that is carried out in order to obtain personal gain or to cause a loss to another individual or social actor.

A fraud can include the false representation of a third party, the deceptive manipulation (concealment, or even the ill-intentioned publicity) of the information or simply the abuse of the position with which one has in an organizational structure. Fraud does not recognize status and is always at work at all levels. There is fraud via email, by phone, by letter, by social networks, internal fraud, external fraud, and so on.

Within a company, a fraud can be as simple or as complex as the theft of simple or confidential information, the malicious transfer of funds, the diversion of funds, the hiring or outsourcing of shell companies, among many other examples.

When faced with suspected fraud, a business executive or manager must intelligently dismiss false leads and stick to the hard facts. If you feel unable to get to the bottom of things, you can always turn to a serious company of private detectives, who will take this investigation to the last small loopholes that may exist.

Whether it is a person who works within the company where a suspicion of fraud has been presented or if the work is carried out by a private investigator specialized in the area of ​​company fraud, here are the most effective ways in which HPS fraud monitoring solution can be detected within the company.

  • Testimony of Witnesses for fraud detection

The first way to actually detect fraud is so simple that it is almost absurd that it is so effective. We are talking about the testimony of other people. Those who witness or suspect they have witnessed fraud and report it can help to quickly and expeditiously detect a sensitive criminal situation of this category.

Around 40% of the fraud detected in a company is found through this simple route. Obviously, it is not that simple since the testimony of one person is not enough to prove fraud and an internal audit or a more thorough investigation will be needed to obtain sufficient evidence to take the necessary actions to stop this situation and punish the person that has been hurting the company.

Likewise, for this seemingly simple strategy to work there must be an open door policy within the company and well-regulated accessibility within the organization so that an employee who witnesses the fraudulent attitude of another dares to carry out the corresponding complaint. It is essential that there is an environment of credibility and trust.

This is important for many other aspects within a company, such as the existence of motivation and an adequate organizational climate, but in this case, it also proves to be an excellent strategy for the timely detection of internal fraud.

  • Observation of Suspicious Behavior

People who commit fraud usually display some kind of rather unusual or strange behavior, which carefully observed can be a fairly accurate index of fraud. The person involved may not take vacations at the time they were due, or on the contrary, absent from work for several days for fear of being discovered.

If it is a person who is in a position of greater responsibility, it may be observed that she refuses to delegate work despite appearing exhausted and being obviously overloaded with obligations. Of course, you can also present a defensive attitude, develop some compulsion or vice (suddenly start smoking or drinking or do it uncontrollably), in addition to being irritable and unfriendly to your subordinates and co-workers.

Once again, it is necessary to emphasize that detecting these types of circumstances is much easier if the company policy is open-door and if there is an environment of trust so that anyone who detects such unusual behavior in a colleague or manager dare to make the corresponding complaint.

  • Existence of Anonymous Complaint Lines

Reporting on a co-worker is not pleasant. People are afraid of becoming a “snitch” or “snitch”, someone undesirable to others. Nobody wants to be the one to accuse the other. So despite an open and trustworthy policy within the company, many likely fraud reports are likely to be missed as it is rare for a person to voluntarily decide to become an “ally” of bosses.

It is in this sense that the existence of an anonymous form of complaint can be an excellent alternative, especially for large companies. This anonymous form is usually a telephone line, since by sending an email or leaving a written message; it is easier to “track” the person who made the report.

As there is a telephone line for internal complaints, those who have witnessed fraudulent behavior feels protected by true anonymity to accuse or point out the person who is carrying out this type of criminal attitude within the organization to which they belong.