FRAUD INVESTIGATION

To an estimated 6.3 billion was lost in company revenues in 2017 or an average per case study of $2.7 million. However, the median loss was $150,000 with 23.2% of cases causing $1 million or more. Fraud and embezzlement workplace investigations are critically important. By using pioneered methods, our experienced fraud investigators will provide you with solutions to this complex problem. Our efforts include the investigation of occupational fraud and various forms of white-collar crime.

For example, over 80 percent of occupational fraud involves asset misappropriations. Cash is the targeted asset 90 percent of the time. In order to protect you, we implement our knowledge of business accounting, banking standards, and auditing methods into our workplace investigations. Coupled with our interviewing skills, we can evaluate complex financial transactions and investigate questionable business activities.

Our occupational fraud investigation services focus on the following three specialized areas that affect most businesses:

  • Asset Misappropriation
  • Corruption
  • Fraudulent Statements

Our experienced financial investigators perform a specialized analysis and review the results of the investigation. They conduct administrative and investigatory interviews with employees and non-employees to resolve any discrepancies or to verify given references. If the situation requires, we will locate and confirm independent sources of information to reach the client's objectives and determine the extent of the problem, should one be discovered. We can also implement an undercover workplace investigation, if necessary.

Often we liaise with local authorities to provide necessary evidence to seek a conviction and appropriately punish the guilty, while protecting the rights of the victims and securing restitution for your losses and the costs of using outside professional services.

Fraud-Related Statistics

The following statistics and those noted above are from the 2016 Report to the Nation. This report, conducted by the Association of Certified Fraud Examiners, provides the most detailed view of how occupational fraud affects organizations in the U.S.

  • Asset misappropriation was by far the most common form of occupational fraud, occurring in more than 83% of cases, but causing the smallest median loss of $125,000. Financial statement fraud was on the other end of the spectrum, occurring in less than 10% of cases but causing a median loss of $975,000. Corruption cases fell in the middle, with 35.4% of cases and a median loss of $200,000.
  • Among the various forms of asset misappropriation, billing schemes and check tampering schemes posed the greatest risk based on their relative frequency and median loss.
  • The longer a fraud lasted, the greater the financial damage it caused. While the median duration of the frauds in our study was 18 months, the losses rose as the duration increased. At the extreme end, those schemes that lasted more than five years caused a median loss of $850,000.
  • The most common detection method in our study was tips (39.1% of cases), but organizations that had reporting hotlines were much more likely to detect fraud through tips than organizations without hotlines (47.3% compared to 28.2%, respectively).
  • When fraud was uncovered through active detection methods, such as surveillance and monitoring or account reconciliation, the median loss and median duration of the schemes were lower than when the schemes were detected through passive methods, such as notification by police or by accidental discovery.
  • In cases detected by tip at organizations with formal fraud reporting mechanisms, telephone hotlines were the most commonly used method (39.5%). However, tips submitted via email (34.1%) and web-based or online form (23.5%) combined to make reporting more common through the Internet than by telephone.
  • Approximately two-thirds of the cases reported to us targeted privately held or publicly owned companies. These for-profit organizations suffered the largest median losses among the types of organizations analyzed, at $180,000 and $178,000, respectively.
  • More occupational frauds originated in the accounting department (16.6%) than in any other business unit. Of the frauds we analyzed, more than three-fourths were committed by individuals working in seven key departments: accounting, operations, sales, executive/upper management, customer service, purchasing, and finance.
  • The more individuals involved in an occupational fraud scheme, the higher losses tended to be. The median loss caused by a single perpetrator was $85,000. When two people conspired, the median loss was $150,000; three conspirators caused $220,000 in losses; four caused $294,000; and for schemes with five or more perpetrators, the median loss was $633,000.

Our staff received yearly training in mortgage fraud and these are some of training schools that our staff have attended:

Miami Dade Public Safety Institute - Real Estate and Mortgage Fraud Investigations
American Association of Residential Mortgage Regulators - Fraud and Investigations School
Association of Certified Fraud Examiners - Mortgage Fraud Training

Our staff is given yearly CEU in mortgage fraud related topics and are active on the latest trends. We will assist you in investigating your loans and helping you resolve claims, losses, and or groups trying to deceive your underwriting staff.

The following are some of the investigative functions we have performed for mortgage lenders, PMI carriers, and GMI carriers:

  • Occupancy Investigations
  • Employment and Income Investigations
  • Stated Income Investigations
  • Bank Statement Review and verifications
  • Loan Audits
  • Broker Audits
  • HUD audits
  • Hidden Debts (Usually debts not disclosed at origination )
  • Appraisal Fraud
Florida A2300340 - California PI26215 - New York 11000172738
Florida Association of Licensed Investigators Association of Certified Fraud Examiners National Council of Investigation and Security Services Florida Board of Certified Investigators John E. Reid & Associates Nine Lives Associates Private Investigator of California Association
International Association for Asset Recovery