Fraud Investigation

Written by Charles Peacock
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Fraud investigation must, in many cases, be performed by private investigators, because an initial lack of proof of any wrongdoing leaves the investigation out of the jurisdiction of the local or national authorities. But this doesn't mean fraud can't be prosecuted. If the private fraud investigation results in evidence and proof of wrongdoing, charges can be brought and restitution can be sought through legal channels.

The Rules of Fraud and Fraud Investigation

Fraud is a complex crime, but it always follows a few specific rules. The first rule in a fraud case is that someone has to have been intentionally misleading about something. The perpetrator can be a person or an organization, but in either case they must have purposefully lied or misrepresented an important fact or occurrence.

The second rule of fraud states that the victim (again, this can be a person or an organization) believes the misrepresentation. According to the third rule, the victim has to rely upon or act upon the misrepresentation. In other words, they have to have been deliberately misled into doing something or believing something important.

The last rule of fraud states that the victim must have suffered a loss as a result of the misrepresentation. If they lose either money or property, the situation can be constituted as fraud. Fraud investigation professionals can help you look into a matter and determine if the situation fits all of these requirements. If it does, it is legally considered fraud and can be handled and prosecuted as such.


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