The first danger faced is a rush to judgment about potential involvement and scope of the problem. Innocent behaviors become suspect, and the futures of innocent people are jeopardized. Suspicion and wild theories of conspiracy abound when a fraud is discovered. Senior executives must put aside the emotional baggage and approach the problem as a management issue. This is critical to the success of the inquiry.
Careful planning is at the heart of every successful investigation.
Secrecy Information about the suspected fraud should be limited to those with a need to know. Exactly who these people are depends on the suspected associate's position and type of fraud. As with any item of sensitive information, the more people who know the greater the likelihood of an inadvertent leak. Secrecy in the early stages of the investigation increases the options available to investigators looking for evidence. A perpetrator who is unaware that his or her fraud has been exposed continues to offer opportunities to identify conspirators and the scope of the loss.