What to do if you suspect fraud
If you uncover or suspect fraud in your business you will need to act quickly.
Ensuring that you stop any ongoing fraud and further loss is obviously vital.
It is equally important to make sure that you have the best possible chance of recovering the losses you have already suffered. You should take immediate steps to:
- Start investigating the fraud and the losses you have suffered whilst the evidence is still available
- Ensure that evidence is not lost or destroyed, either as a result of deliberate destruction by the fraudster (or others assisting him) or inadvertently, for example, as a result of your company’s e-mail retention policy
- Make sure you do not “tip-off” the fraudster, which would give rise to the risk of him destroying evidence and/or hiding assets to prevent recovery.
- You should take immediate legal advice on these issues. The steps that you take (or fail to take) at this stage can have a real impact on the range of legal options open to you for recovering your losses. For example, you may be unable to obtain a freezing or search order if the suspected fraudster has learned of your suspicion or any order made may be futile.
Our Litigation & Dispute Resolution Team can assist you at this critical stage in deciding how best to recover your losses.
We will also work with our Regulatory team to advise you on any relevant regulatory issues such as whether you are required to notify authorities such as the SFO, police, HMRC, SOCA and the FSA and, if so, when.