When fraud is discovered, you need to be able to quickly identify what has happened and who has been affected. A well conducted fraud investigation can help recover losses, protect reputation, and prevent future incidents.
Fraud is a crime committed by an individual or group that involves intentionally misrepresenting a fact for personal gain. It includes activities like false claims, falsified data, and misleading research. Fraud can range from a minor violation of policy to a serious felony. Some types of fraud, such as credit card fraud, are prosecuted as felonies in all states, while others, like insurance fraud, are prosecuted based on the value of the claim.
Whether an allegation of fraud or theft is a simple matter of mistaken identity, or a more complex case with multiple victims and suspects, your investigation will include reviewing records, interviews with witnesses, and writing up a report. When conducting an investigation, it is important to adhere to strict protocols, remain neutral and objective, separate facts from inferences and assumptions, and not engage in a witch hunt.
Trust and Safety teams investigate all sorts of fraud, from marketplace crimes (like stealing seller credentials to purchase goods on the site with someone else’s money) to wire fraud, like phishing scams and advance fee schemes. Below, we explore three types of fraud that tend to occur in marketplaces and what Trust and Safety teams should look for when investigating these crimes.
About the Author
