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INVESTIGATING THEFT ACTS (Deciding When to Investigate (Exposure or amount…
INVESTIGATING THEFT ACTS
Deciding When to Investigate
Exposure or amount that could have been taken
Risks of investigating and not investigating
Perceived cost of the investigation
The signal that investigation or non-investigation will send to others inside and outside the organization
Perceived strength of the predication
Public exposure or loss of reputation from investigating and not investigating
Nature of the possible fraud
Beginning an Investigation
Involve as few people as possible
Avoid words such as “investigation”
Use techniques that will not likely be recognized
As the inquiry proceeds, investigative methods will work inward toward the prime suspect
Developing a Vulnerability Chart
When beginning a fraud investigation, it is often useful to develop hypotheses about
What their motivations might have been
How much might have been taken
Who the possible perpetrators could have been
What kind of fraud could have occurred
One way to develop such hypotheses is to use a vulnerability chart, a tool that explicitly considers all aspects of the fraud.
Purpose of a Vulnerability Chart
A vulnerability chart coordinates the various elements of the possible fraud, including
Theft investigative methods
Concealment possibilities
Individuals who had theft opportunities
Conversion possibilities
Assets that were taken or are missing
Theft Act Investigation Methods
Invigilation
Close supervision of suspects during an examination period
Obtaining physical evidence
Cases involving inventory where physical stock can be counted and a search for missing inventory can be conducted.
Surveillance and covert operations
Watching and recording (on paper, film, or other electronic device) the physical facts, acts, and movements, which are part of the theft act of a fraud
Three types of surveillance are
Moving or tailing
Electronic surveillance
Stationary or fixed point
Gathering electronic (computer) information
Substances such as grease and fluids
Traces such as paints and stains
Inventory, assets, and broken locks
Impressions such as cutting marks, tire tracks, and fingerprints
Electronic Evidence
Confiscating and searching of computers are often associated with a fraud investigation
To work with IT support and legal counsel to collect data from Texts, email, social media