Whether it’s credit card fraud, bankruptcy fraud, healthcare fraud, or insurance fraud, fraud is one of the most devastating crimes you can commit. A fraudulent case can lead to legal action, restitution, lost profits and reputation damage. A fraud case requires a careful investigation to uncover what was done, by whom and how.
According to the Association of Certified Fraud Examiners, fraud is “any activity that relies on deception to obtain a fraudulent benefit.” Criminal fraud involves the misuse of money or property and can be a misdemeanor or felony. Civil fraud involves a person or business seeking damages from another party and can be a civil or a civil conspiracy to defraud.
To prove a claim of fraud, you must show the following: someone made a statement about an existing fact; that statement was false; the person knew it was false; they wanted you to rely on the representation; you actually did rely on the representation; and, you were damaged as a result of reliance on the representation.
It is important to begin a fraud investigation as soon as you notice suspicious activity such as discrepancies in records, reports of unethical behavior and/or fraudulent transactions. This will increase your chances of recovering losses and decreasing damage. Proper documentation is also essential for a successful fraud case. This includes ensuring confidentiality, adhering to protocols and separating facts from opinions or assumptions. It is also crucial to work quickly so as not to lose any evidence.
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