| Numerous different bodies investigate fraud | | | | to keep costs down and to ensure that the |
| including police forces, fraud regulatory authorities, | | | | criminal regulators are kept at bay. However, |
| internal auditors and forensic accountants. There | | | | very few businesses will have internal expertise |
| are many different legislative provisions that they | | | | that possesses the experience and qualifications |
| use including the Police and Criminal Evidence Act | | | | necessary to undertake a fraud investigation. |
| (PACE), the Regulation of Investigatory Powers | | | | More harm can be done by employing |
| Act (RIPA), the Employment Acts, the Insolvency | | | | inexperienced resources to detect and recover |
| Act and the Companies Act. They all give strong | | | | losses from fraud. For example if a suspect is |
| powers to those investigating fraud. In all cases | | | | questioned inappropriately there is a strong |
| they involve using costly professionals or the | | | | possibility that any evidence obtained will be |
| disruption of the victim's business by the | | | | inadmissible in court and could lead to the |
| regulatory investigators. | | | | organisation finding itself on the receiving end of a |
| If the police are informed of a fraud and they | | | | claim for constructive dismissal! |
| decide to investigate they often take a heavy | | | | An answer might be using both external expertise |
| handed approach. They may well remove | | | | and internal resources. By utilising external fraud |
| accounting records for further investigation back | | | | expertise it may be possible to manage the |
| at their own offices. This can involve weeks and | | | | efficient use of internal resources to conduct a |
| months when they will be scanned and catalogued | | | | fraud investigation. This means that an |
| before any numbers are investigated. This can | | | | organisation can carry out fraud investigation and |
| have a very disruptive effect on a business that | | | | asset tracing work under the competent guidance |
| might already be suffering due to a fraud, and if | | | | of a fraud expert without employing expensive |
| the process takes so long it might allow the | | | | teams of lawyers and accountants to do the |
| culprits to escape. | | | | work. The expert will keep the police or other |
| If a business suffering fraud asks for help from | | | | criminal regulatory authorities informed, and may |
| its advisors, this can assist without disturbing | | | | even submit an investigation report to them for a |
| normal activities. However, employing lawyers to | | | | subsequent criminal prosecution. The victim will |
| manage civil asset recovery action, and forensic | | | | need to employ appropriate legal expertise, but |
| accountants to trace any lost assets, can be an | | | | only when required and only those that are |
| extremely costly exercise. Often this only | | | | capable for the task of recovering assets. Unless |
| happened when large amounts have been | | | | there is a need to show investors or the outside |
| defrauded. | | | | world that a substantial "branded" investigation is |
| So what can be done, to investigate a fraud and | | | | being undertaken, a safe, quick and economical |
| recover assets, when only modest sums of | | | | option for recovering assets must be to |
| money have been stolen? It would be possible to | | | | efficiently match internal resources with external |
| utilise a company's own internal resources in order | | | | expertise. |