It’s shocking to discover a fraud suspect in your company. But, you should know what to do after suspecting it. It will help you minimize damage, and prepare you for its effects on 0your business. So, here are the 5 steps you must take after suspecting a fraud.

Step-by-Step Guide to deal with a Fraud Suspect

  • Secure Potential Proof

At the outset, you must secure evidence in every possible way. It is relatively easy to manipulate electronic proof. Hence, you must secure computers, mobile phones, CCTV camera footages, biometric devices, etc. to ensure no one alters, modifies, or manipulates the existing data. You get everything in its original form. Besides, it simplifies investigation for the forensic accounting team.

  1. Hire an External Financial Investigator

Next, you must mobilize a team to conduct various investigative tasks for you. You’ll require a forensic accountant, and computer forensic expert to gather, analyze, and preserve the data. Hiring an external, experienced financial investigator will help you dig into the fraud. 

Avoid including an in-house resource in the investigation team, as he or she may have some connection with the fraud. Also, hire a legal expert to explore the legal angle and safeguard it.


  • Take the Appropriate Action on the Employee Involved

Anger and disappointment may compel you to fire the employee involved in the fraud. But don’t do so. Firing the employee may complicate the investigation. Limit the employee’s access to company data, monitor movements. Don’t let him or her handle critical customer documents, data, and reports.

  • Inform Your Insurance Provider

Inform your insurance provider about the fraud within 30 to 60 days to avoid loss of coverage.

  • Document the Proof of Loss

You must document any damage with your insurance provider within the stipulated time frame. It takes time to document and record the claim. You may file an extension based on the situation. However, in every case, ensure you don’t lose any coverage.

You may be unable to prevent fraud completely. However, you can minimize them and monitor every employee’s action through the application of technology and fool-proofing every business process. Taking the right steps when you suspect it will help you keep away from any further damage to your business and reputation.

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