Employee fraud can take many forms – including theft, false expenses or expense manipulation, misuse of company assets, data theft, bribery, or conflicts of interest. Discrepancies may be warning signs of employee fraud – or may have innocent explanations. This is where PDL’s corporate investigations come in: to provide answers and/or reassurances to concerned employers. We are here to assist our valued corporate clients to establish salient facts, gather evidence, and ultimately make informed and proportionate decisions.
What Is An Employee Fraud Investigation?
An independent private investigation of the conduct of an employee, contractor, or other person with
trusted access to an organisation – with the purpose of determining whether this individual’s actions are
indicative of fraud.
What Are Warning Signs Of Employee Fraud?
1. Discrepancies In Financial Records
This means repeated discrepancies between invoices, purchase orders, bank records, expenses, payroll or stock systems. Of course administrative error is possible. But where discrepancies recur, are unable to be explained or corrected, the organisation must establish why.
2. Processes Being Overridden
Internal process exists to guide and protect organisation and employee alike. Repeated avoidance of process is often a sign of an underlying issue. If an employee is bypassing necessary process – or controlling a process too closely – further investigation may be necessary.
3. Assets Or Stock Missing
Meaning unexplained loss of stock, assets, vehicles, data, or any other company property. While isolated losses can occur – signs like repetition, links to certain shifts, timings, individuals or access privileges may denote a closer look is required.
4. Records Altered Or Unavailable
This means missing audits, deleted information, gaps in paper trails, and similar issues with records and communications. This is particularly concerning when the relevant information is edited or lost shortly after questions have been raised.
5. Complaints Received
Tip-offs from other employees who have witnessed concerning matters first hand may be the starting point for your employee fraud enquiry. It’s important in these instances to ensure the confidentiality of the complainant while investigating the matter thoroughly.
6. Inflated Performance Figures
Fraud may not always appear as a loss. It may be manufactured success in the form of false sales or manipulated targets. Results consistently exceeding all realistic expectations – then seeming uncertain under scrutiny – are the key warning sign here. When Is An
Employee Fraud Investigation Appropriate?
Essentially – whenever you strongly suspect employee fraud is taking place and have initial pieces of verifiable evidence with which to begin the investigation. Where we can be helpful is in that we are experienced, diligent, discreet, and entirely separate to the organisation itself – meaning we can retain professional distance and impartiality. How PDL
Conducts Employee Fraud Investigations
Designed around the suspected conduct, the available evidence and the decision the organisation needs to make. A typical process involves:
1. Confidential consultation – at which we establish your concerns, existing evidence, and relevant risks – then propose a way forward.
2. Evidence-led investigation. If instructed, we examine the relevant financial, documentary, corporate and operational information and use our specialist methods and expertise to establish fraud or its absence.
3. Clear findings and next steps. We provide an organised report explaining what has been established, what remains uncertain and the evidence supporting each conclusion. We follow the evidence, protect confidentiality and maintain legality and ethics throughout.
Discuss A Suspected Employee Fraud In Confidence
If you or your organisation are concerned employee fraud may be ongoing, please contact PDL on +44 (0)20 3747 1865 or via the confidential enquiry form below to arrange a free, no-obligation consultation.
