{"id":16343,"date":"2022-10-07T15:44:10","date_gmt":"2022-10-07T20:44:10","guid":{"rendered":"https:\/\/www.sfwpartnersllc.com\/news-and-guides\/?p=16343"},"modified":"2022-10-07T10:44:11","modified_gmt":"2022-10-07T15:44:11","slug":"how-to-handle-evidence-in-a-fraud-investigation-at-your-business","status":"publish","type":"post","link":"https:\/\/www.sfw.cpa\/news-and-guides\/how-to-handle-evidence-in-a-fraud-investigation-at-your-business\/","title":{"rendered":"How to handle evidence in a fraud investigation at your\u00a0business"},"content":{"rendered":"

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Every business owner should establish strong policies, procedures and internal controls to prevent fraud. But don\u2019t stop there. Also be prepared to act if indications arise that, despite your best efforts, wrongdoing has taken place at your company.<\/p>\n

How you handle the evidence obtained could determine whether you\u2019ll be able to prove the charges brought against the alleged perpetrator and win the case in court.<\/p>\n

Protect the chain<\/strong><\/p>\n

Handling paper documents is relatively easy as long as you approach the task with care. Place any hard copies related to the possible fraud in a secure location. The fewer people who touch them, the\u00a0better.<\/p>\n

Don\u2019t make notes on the relevant paper documents. Instead, write notations about when and where they were found, and how you preserved them, in a separate log. You can copy anything you need to continue operations and turn the originals over to your professional advisors or law enforcement for fingerprinting, handwriting analysis or other forensic testing.<\/p>\n

Remember, a court case can be derailed if you don\u2019t preserve the chain of evidence and can\u2019t prove to a judge\u2019s satisfaction that documents haven\u2019t been tampered with.<\/p>\n

Train IT staff<\/strong><\/p>\n

Digital evidence generally presents more challenges \u2014 especially if your IT staff isn\u2019t trained to react to fraud incidents. Even if these employees are highly skilled at setting up and troubleshooting hardware and software, they\u2019re unlikely to be fully aware of the legal ramifications of dealing with a computer or mobile device used to commit fraud.<\/p>\n

To avoid the inadvertent destruction or alteration of evidence, arrange for specialized training that teaches IT employees to respond appropriately when fraud is suspected. They should be instructed to stop any routine data destruction immediately. If your system periodically deletes certain information, including emails, IT staff should suspend the process upon notification that something is amiss.<\/p>\n

In many cases, it\u2019s wise for businesses to engage a qualified computer forensics expert to assist in the investigation. These professionals can identify and restore:<\/p>\n