Specialists in the field of fraud detection and investigation are essential in the fraud detection firms. The first coordinator is a fraud analyst. The fraud analyst monitors millions of the online transactions of a particular corporation to establish potential fraud. The fraud analyst detects individuals that use deceptive practices or stolen information to launder money. Also, they detect criminal trend during the investigation.
The second coordinators are the forensic accountants. They intervene in any fraud fact through account analysis to make sure a specific dispute will be relevant to the lawsuit or court process. The principal role of the forensic accountant is to simplify the complex financial issues so that the client, solicitor, and court will understand. They also assist the solicitors to gather substantial information during investigation and data mining. Moreover, during fraud detection, they can establish mismatch between a business story (income tax returns and financial statements) and other business information’s. Lastly, they are mandated to present expert evidence. The evidence must be oral and written. Cross-examination is a strategy that utilizes both opinion and calculation to provide evidence in a court of law.
The third group involves fraud intelligence and referral officers. They receive fraud allegations from different sources and carry out a risk assessment. They also ensure the reported assertion is correct and aligns with the client’s statement through conducting a simple background check. The officers are mandated to decide a specific case that is worth to investigate. Finally, they avail all the relevant files to the investigator. The files contain evidence documents and claims of a particular case.
Furthermore, intelligence gathering is another role of the group. It is an integral stage since enhancement of original referral is conducted during this step. They have a responsibility to gather information from service providers or data holders like communication providers, service/utility companies, banks or employers since they have authority from their office. The collected and organized information is only relevant if they accord with the policies and legislation of the council.
The fraud detection supervisor is the last coordinator in the department. The supervisor must ensure the entire fraud detection process runs smoothly. The decision and implementation made by the supervisor should be firm. They must monitor the whole activities and ensure an excellent interpersonal relationship between the clients and the associates. Their ability to solve incidents and irregularities that relates to fraud activities rely on their creative skills.
The team leader of the fraud detection team is the supervisor. The supervisor often conveys the information regarding the new approaches that simplify incidents of fraud to other associates. The cooperation between the members enables them to detect fraud in companies easily. Evaluation of the duties carried out by other associates and assigning of the tasks is carried out by the supervisors. The fraud supervisor makes sure the team member finish their assigned work.
Investigative tools for fraud detection and prove
Anti-fraud Data Analytics Tests: It is a compelling investigation, detection and prevention tools used to establish and uncover fraud. Also, it is a core a holistic and a useful tool in the management program of fraud risk. The companies that use non-data analytics tools to control fraud has a higher incidence of fraud than an organization that utilize data analytics tools that are proactive according to the report 2016 ACFE report. The ACFE’s Fraud Tree forms the basis for the analytics tool during fraud detection. The tool is useful in detecting fraud in microfinance firms.
Guidance Software and AccessData produce Encase and Forensic ToolKit tools respectively that are used to examine and process forensic images during fraud detection. They are essential since retrieval of deleted and hidden data is possible. The investigator can present the image content to the court. Also, missing chat logs and various artefacts in social media can be recovered through the use of tools. The tools are used mainly when social media platforms such as Twitter or Facebook was a mean of communication between the offenders. Additionally, internet history is a source of evidence that can be provided during the lawsuits. For instance, a fraudster computer indicating various banking website it can be deduced that the primary interest of the perpetrator is banks. However, the right of the defendants should be protected during searching and presentation of the information. The third party should never share retrieved information. During data mining of the information from the defendants, a search warrant must be produced.
Role of expert witness
The central role of the expert witness is to present a view on matters revolving around their specialism and during court proceedings. An example of the expert witness is the accountants. They can give their expert statements depending on the finding as well as testify about the financial matters of the client. State and Federal laws, Civil Procedure Federal Rules, and the Federal Rules of Evidence are the binding regulations when accountant testify in a State or Federal court. Each state has specific rules that govern a forensic accountant when presenting an expert opinion; therefore, an accountant should adhere to each state regulations. The accountant is an expert witness needed during fraud detection in the finance institutions.
Admission of the expert testimony is under Evidence 702 Federal Rule. Initially, accountants were not eligible to present an expert testimony when The Frye standards controlled rule 702. Currently, only the state courts use the Frye standard. At this level, the decision regarding if the expert should present an opinion relies on the “experts” peer’s opinion according to the Frye standard requirement. Rule 702 has open doors to any person with specialized, technical or scientific knowledge to qualify as an expert witness.
Issues in evidence law to be aware of as it pertains to proving and prosecuting fraud (Ms Miller specifically asks for identification of applicable Federal Rules of Evidence to be aware of)
Legal evidence concept is an important law aspect when presenting evidence in a court of law. Fraud evidence in the federal or state court only remains viable if the retrieval and mining were legal. The rules governing evidence dates from the legal tradition to the Anglo-American law. Below are essential Federal regulations.
The Legal Significance of Relevance: It is a core concept in legal fact-finding. There is two important evidence law articulated under this rule. First is that the court will not accept any irrelevant evidence and the second is that the court receives anything that is relevant as evidence. The two fundamental principle links with Rule 402. However, States and Federal courts now appreciate the existence of relevant evidence in fraud that lacks concepts of legal.
Conceptions of Logical Relevance: State and Federal courts only accept evidence if the facts in proceedings are relevant. A relevant fact exists when it relates to another. The relationship is described as “probable.” The federal rule of Evidence 401 defines a relevant as evidence that presents more fact on its own. For instance, the evidence presented on money laundering with prove documents are relevant in a court of law.