Private investigators play an important role especially when it comes to helping prevent and investigate different types of fraud. They can be hired to help prevent corporate and insurance fraud, as well as setting up control measures to help prevent embezzlement in various organizations.
Roles of a private investigator
Private investigators apply some methods in carrying out their duty of helping prevent fraud. These include:
This is one of the most popular methods that private investigators use in their effort to help prevent fraud. This particular method involves conducting surveillance of a particular claimant or of a specific individual where an organization may have reasons to believe fraud has taken place. Private investigators may use visual or audio surveillance to carry out their investigations.
This method is most used to investigate false claims related to personal injury compensations. In essence, it helps insurance companies that deal with Workers’ Compensation cases to truly establish whether the employee who has made claims for compensation was injured to the extent he or she has claimed.
Private investigators can collect evidence related to the case in question by looking for photographs related to the specific insurance claim or an individual’s activities after the accident in question. Also, they can use medical records related to the specific claim. The evidence can then be reviewed to help establish whether or not any fraud was involved when the employee in question filed for compensation.
Private investigators can also conduct research in their quest to establish whether any fraud has been committed. This may include reviewing audio, computer, and electronic files, as well as other records. This method of investigation can allow the investigators to see the loopholes in the internal control system, view suspicious activity, as well as monitor the behavior of the employees in question.
Enhancing internal controls
Private investigators can also infiltrate the internal control systems of an organization to test its effectiveness when it comes to preventing fraud. If they find any weaknesses with the system, they can recommend new, stronger internal controls aimed at making the business less susceptible to fraud.
Private investigators can use interviews as a way of trying to detect fraud. They may require claimants to fill out questionnaires and use them as part of their evidence in a civil case. Also, they can also interview other people who may be associated with the specific claimant, including neighbors, mother employees, as well as supervisors.
Conducting background checks
This is particularly important when an organization is recruiting new personnel. Conducting thorough background checks can help prevent an organization from hiring unsuitable persons. Also, it can help identify suitable business partners, establish whether an employee has been involved in criminal activities in the past, among other things.