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Note: See bottom of page for links to our related services for this type of crime
South Africa has one of the highest rates of commercial fraud per capita in the world! For this reason O F & A employs a number of highly specialised staff who have the ability to investigate all facets of this crime which plagues our country.
One of the interesting elements of a fraud is that this crime generally leaves a trail of documentation which serves as evidence for the investigation team. Syndicates have become adept at ensuring that the trail leads away from the syndicate perpetrator's true identity however they can not control the process employed by the company in identifying the employee within the company or organization who assisted them in the crime. This is where O F & A has proven to be so effective. A fraud investigation relies on various fields of expertise including, but not limited to:
(1) Financial asset searches to reveal unlawfully received funds.
(2) Interviews and Interrogation. (3) Polygraph examinations. (4) Logical structured investigation by our Criminal Investigation Division. (5) Coalation of information and data to narrow the field of suspects. O F & A incorporates all of these expertise under one roof which allows for a more effective investigative team. The are various fraud scenarios with which we are faced each day. Here follows some of the most common situations which company's face and how we approach such investigations:
O F & A incorporates all of these expertise under one roof which allows for a more effective investigative team. The are various fraud scenarios with which we are faced each day. Here follows some of the most common situations which company's face and how we approach such investigations: (NOTE: Tips on how you can help ensure a successful case are highlighted in purple throughout the text)
Blank cheques stolen from a company cheque book
A common scenario is where an employee steals a cheque or cheques from a company cheque book and then hands these cheques on to a member of a fraud syndicate in lieu of receipt of some of the funds gained from the fraud. Depending on the level of security maintained over the cheque book the field of suspects can vary greatly and thus the scope of investigation may vary as well. This type of case most often requires us to conduct a THEFT investigation since this was the first act in the chain of sequences in the fraud. Furthermore it is most often the case that the cheques are deposited into an account using fraudulent identification particulars which renders a pursuit in that direction fruitless. The syndicate members may however be caught in the process of attempting to draw on the account into which the fraudulent funds were deposited. For this reason it is preferable not to be too hasty in approaching the bank when the fraud is discovered since this may result in the banks inadvertently alerting the perpetrators and thereby preventing an arrest. It is however sometimes the case that the bank detects the fraud before the company is aware of it and whilst the perpetrator is attempting to deposit a fraudulent cheque. With the use of ATM's however the cheques are often deposited via this system and calls are made to the bank from a remote location until the perpetrators have confirmed the funds have cleared and then only do they physically enter the bank to draw on the funds. They may even avoid entering the bank altogether by simply making use of the ATM to draw the money which makes tracking the perpetrator extremely difficult. As described under THEFT there are various methodologies that we employ to identify the person within the company who perpetrated the theft of the cheques. Of course the perpetrators require the correct signatures so the bank will honour the cheque as well as information on any specific limits you may have set as to authorizations etc. This is often where the perpetrator leaves a trail since this is information which is either within their knowledge in lieu of their position (e.g.accounts or admin.) or the perpetrator has to obtain via other methods. The employee will usually steal a "sample " cheque as well which he/she then hands on to the syndicate in order for them to trace the authorized signatures. If they are successful in the commission of such a fraud the perpetrators often pressure the employee in question to provide further cheques whilst telling the employee the initial attempt was unsuccessful or only handing them a portion of the money promised. For this reason it is imperative to limit the scope of persons with whom you discuss the crime when it has been detected since the perpetrator will be constantly aware and will "go quiet" as soon as he is made aware that his crime has been detected.
Completed cheques intercepted and altered
If the cheques were intercepted by an outside party it may be difficult to prove the case since the ambit of possible suspects may be extremely large therefore making the feasibility of such an investigation outside the financial scope of the victim(company or individual). If however there is a strong likelihood that the cheques were intercepted by an employee we would proceed as per a normal fraud investigation as detailed under (1) above. What often distinguishes the separate scenarios discussed above is the "professionalism" involved in the altering of the cheques as well as the details of the account used to deposit the stolen cheque into. We have often found a tendency for the employee to make certain errors which inadvertently leads back to his/her identity. This type of case would have to be handled with consideration given to the probability of whether the perpetrator is from an internal or external source. One of the best ways to avoid falling victim to this type of crime is to place an irremovable clear sticky film over each cheque once it has been completed.
An employee misrepresenting themselves and having funds paid directly to them.
O F & A handles numerous of this type of case each year. Many companies have to place trust in their sales staff and client liaison officers or consultants to conduct themselves in an ethical fashion however there are always a statistical minority of employees in these fields that see an opportunity to abuse the trust of their employer and that of the company's client who they have often become well acquainted with. This results in employees selling the company's product and not declaring the sale to the company and "pocketing" the proceeds. Companies who deal in cash transactions are particularly vulnerable to this type of crime. You should become suspicious of a sudden drop or lack of sales to any long standing clients since this is often the first indicator of untoward conduct on behalf of an employee dealing with that client. Another modus operandi is for sales staff or the like to start to build a "private" client network selling your product without your knowledge to "new" clients which the sales person has obtained through his required duties as a sales executive. We have an excellent success rate in conclusively proving the case against the perpetrator in this type of investigation. This type of investigation will pull on various of our fields of expertise and since it requires covert investigation on behalf of the investigative team we can not discuss the exact methods employed here but would prefer to discuss them in person with you.
For further insight and interesting reading on this topic follow the links below to other area of our site!
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