Fraud schemes and investigation

Fraud schemes and investigation

Introduction

The occurrence of huge and frequent corporate frauds across the United States at the beginning of the twentieth century aggravated an instantaneous legislative reaction in the form of Sarbanes Oxley Act (SOX) (Brody et al, 2012). The urgent implementation of this act indicates the small and big organization have completely failed to minimize the occurrence of fraud activity in their premises, and it has become imperative for the government to increase the monitoring of every organization, and formulate innovative fraud prevention strategies.

Despite of taking severe steps, authorities has still not able to completely eliminate the occurrence of these illegal activities and recent corporate fraud in AIG insurance company which has forced the company to take credit loan from US federal reserve board to pay of its creditors and customers(Green, 2002). The management of the company has hired a fraud investigator to find out the roots of this fraud, and to identify the mastermind behind this fraud.

Discussion

According to () current economic conditions of the public can be considered as the motivating factor behind the frequent occurrence of fraud activities in organization. However, being chief investigating officer it is my responsibility and a challenge to ensure that investigation process is carried in such a manner that enable them to gather all the required information within the organization premises, and without providing fraudster the timeframe of stopping or covering their illegal practices. Moreover, in current era it has been observed as a normal practice that employee working in particular organization are involved in their personal business of same genre (Hagstrom et al, 2012).

In order to gather all the relevant information I have used several types of covert, surveillance, and technological strategies. Firstly, I have instructed the management of the organization to provide us the footage of CCTV that is installed in most part of the organization. These CCTV footage would become the foundation of investigation process, as it would provide as movements of every employees, and if some portion of the footage is missing or edited that it would make it certain that senior executive of CCTV professional are also involved in this fraud activity.

Secondly, investigation team has retrieved valid information from the computers of the employees without getting their consent, and this information has enable them to monitor the working activities of the employees, their web search, mails, and other(Hylton et al, 2010). In addition to this, with the permission and help of the organization management we have installed the tracking device in office mobiles of every employee without letting them know, and have initiated the surveillance program with the aim of keeping an eye on suspected employees. This, surveillance program is headed by the experience member of our team which will provide minute by minute report of suspected employee, and in this way we could learn about fraudster future plan and his probable partners that are providing him assistance in making this impossible task possible,

In addition to this, we have installed latest security ...