How do you investigate Fraud in a company?
How Do You Investigate Fraud in a Company?
Fraud can strike any business, large or small. Whether it’s an isolated incident or part of a broader pattern of misconduct, fraud can have a lasting impact on an organisation’s reputation, finances and internal culture. So, how do you investigate fraud in a company — effectively and lawfully?
This question matters not just for business owners and managers, but also for HR leaders, legal teams and anyone responsible for corporate governance. The key lies in using a structured and transparent process that uncovers the facts and ensures the right outcomes. This is where working with experienced workplace investigators like Core Integrity becomes essential.
Core Integrity is a trusted firm specialising in workplace investigations, whistleblower services, and integrity advisory solutions. They help organisations respond confidently to misconduct, fraud, and compliance issues through clear processes and expert support.
Let’s walk through how fraud investigations should be handled and what steps your organisation should follow to protect itself, maintain trust and respond appropriately to suspected wrongdoing.
What Is Fraud in the Workplace?
Before looking at how to investigate fraud in a company, it’s important to define what fraud actually is in a workplace context. Fraud typically involves dishonest acts carried out to obtain an unfair advantage, often for financial gain. This includes but is not limited to:
- Misappropriation of funds
- False invoicing
- Expense fraud
- Payroll manipulation
- Theft of assets or confidential data
- Manipulation of financial records
Fraud can also be linked to broader issues such as bribery, corruption, and conflicts of interest — areas that Core Integrity’s Workplace Investigation Services are equipped to deal with.
Inaction is no longer an option when your reputation is on the line
Inaction is no longer an option when your reputation is on the line. Call now: 1300 020 380
When Should a Fraud Investigation Be Initiated?
Not every suspicious activity is necessarily corporate fraud. However, certain red flags should prompt immediate concern and possible investigation:
- Unexplained financial discrepancies
- Anonymous whistleblower reports
- Employee complaints or grievances
- Irregular behaviour from employees with access to finances or sensitive data
- Signs of favouritism or nepotism in financial or procurement roles
If there’s even a reasonable suspicion of fraudulent conduct, a business should act quickly. Delaying action can lead to further losses, destruction of evidence, and erosion of workplace trust.
Step-by-Step Process: How Do You Investigate Fraud in a Company?
1. Preserve Evidence and Contain the Risk
The first priority is to prevent any further harm or data loss. This may involve:
- Suspending the suspected employee (without assuming guilt)
- Restricting access to sensitive systems or financial platforms
- Backing up electronic communications and documentation
- Preserving CCTV footage or physical records
Containment must be handled delicately. Overreacting can create legal exposure, while underreacting may allow wrongdoing to continue. Core Integrity helps organisations walk this tightrope with care and compliance.
2. Engage an Independent Investigator
Internal teams often lack the experience or impartiality needed to investigate fraud. Involving a third-party specialist ensures the investigation is both fair and thorough.
The experts at Core Integrity specialise in fraud and financial misconduct. They approach each case without bias, while ensuring procedural fairness, confidentiality and clear reporting standards.
An independent investigator brings:
- Objectivity in assessing facts
- Legal compliance with Fair Work and other regulations
- Proper interview protocols
- Data handling and evidence preservation expertise
3. Define the Scope of the Investigation
A focused investigation is an effective one. This includes defining:
- The nature of the allegations
- Timeframes involved
- Departments or individuals linked to the suspected fraud
- Specific financial transactions or policy breaches in question
Scope definition prevents investigations from spiralling out of control and ensures resources are allocated appropriately.
If you’re unsure how to structure this process, Core Integrity provides a clear framework on how workplace investigations should be conducted in Australia.
Victoria:
The Equal Opportunity Act 2010 and the Occupational Health and Safety Act 2004 impose duties on employers to prevent discrimination and ensure workplace safety.
4. Conduct Interviews and Gather Statements
Once the scope is confirmed, investigators begin by gathering testimonies from relevant parties. This may include:
- Whistleblowers or employees who raised concerns
- Supervisors or colleagues of the accused
- Finance and HR staff with relevant oversight
All interviews are conducted under strict confidentiality. The goal is not to corner or accuse, but to gather facts, test the evidence, and give everyone an opportunity to be heard.
Proper record-keeping of interviews and statements is critical, especially if the findings later inform legal or disciplinary action.
5. Analyse Financial Records and Digital Evidence
The backbone of any fraud investigation is the supporting documentation. This often includes:
- Bank transactions and reconciliation records
- Invoicing and procurement records
- System logs and audit trails
- Payroll data
- Communication records such as emails and messages
Digital forensics can play a crucial role, particularly in cases involving data breaches, unauthorised sharing of confidential information, or internal scams. Investigators may need to work with IT teams or forensic accountants to build a complete picture.
Corporate fraud investigations often rely on this phase to uncover links between behaviour patterns and financial anomalies.
6. Assess Breaches of Policy or Law
The investigation must determine whether any organisational policies, codes of conduct, or laws were breached. This may include breaches such as:
- Theft or fraud under criminal law
- Breach of confidentiality
- Misuse of company resources
- Breach of anti-bribery and corruption policies
- Conflicts of interest in procurement or hiring
Each finding should be documented, and aligned with evidence gathered during interviews and data analysis. Objectivity is key.
7. Document the Findings and Recommendations
After reviewing all evidence, the investigator produces a report detailing:
- The nature and credibility of the allegations
- Who was interviewed and what they said
- Financial and documentary evidence
- Conclusions about misconduct or fraud
- Recommendations for further action
The report should be legally sound, fact-based and ready to support internal decision-making or external reporting obligations.
Organisations working with Core Integrity receive clear, structured reports that can support HR, legal, and executive teams with their next steps.
8. Take Action Based on the Evidence
Once findings are confirmed, an organisation must act. Depending on the severity of the fraud, this may involve:
- Disciplinary action or dismissal
- Police reporting or civil recovery actions
- Referrals to regulators such as ASIC or the ATO
- Process or policy changes to prevent recurrence
Handling this phase with fairness and consistency is vital to avoid legal risk and reinforce internal trust.
Common Challenges in Fraud Investigations
Fraud investigations are not always straightforward. Businesses often encounter:
- Lack of internal expertise to investigate properly
- Employee fear or silence due to loyalty or intimidation
- Complicated financial records or cover-ups
- Resistance from management or legal risks if the wrong process is followed
Engaging workplace investigation professionals avoids these issues. At Core Integrity, our team is trained to handle these complications professionally, with a clear focus on outcomes and fairness.
We help organisations uncover the truth and make the right decisions.
Prevention Is Just as Important as Investigation
Knowing how to investigate fraud in a company is only half the story. Prevention is just as critical. Businesses should invest in:
- Whistleblower reporting systems
- Fraud awareness training
- Clear conflict-of-interest declarations
- Strong internal controls and audit mechanisms
- Transparent recruitment and procurement practices
Organisations who take a proactive stance create a culture of integrity. This makes fraud harder to commit — and easier to detect.
To learn more about preventative fraud measures and investigations, visit Core Integrity’s workplace investigation service page.
Why Trust Core Integrity?
When it comes to fraud and workplace misconduct, getting it right the first time makes all the difference. At Core Integrity, we provide expert-led workplace investigations tailored to your organisation’s needs.
Our services cover:
- Fraud, financial crime, and misappropriation
- Workplace bullying and harassment
- Bribery and corruption
- Data breaches and intellectual property theft
- Nepotism and unfair recruitment practices
- Employee misconduct and breach of confidentiality
Our team takes a clear, respectful and lawful approach, always with a focus on trust, fairness and risk mitigation. Whether you’re dealing with a suspected fraud or want to strengthen your internal processes, we’re ready to help.
Visit Core Integrity’s homepage or get in touch to speak with one of our workplace investigation specialists.
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Ready to Act on Suspicion of Fraud?
If your organisation is dealing with suspected fraud, financial misconduct or a breach of trust, don’t leave things to chance.
Let Core Integrity help you respond the right way — with professionalism, discretion and experience. From the initial assessment to full investigations and post-case support, we’re with you at every step.
Contact our team today to confidentially discuss your needs, or learn more about our workplace fraud investigation services here.
Frequently Asked Questions
What triggers a workplace fraud investigation?
Triggers include whistleblower reports, discrepancies in accounts, suspicious employee behaviour, anonymous complaints or internal audit findings.
Can a company investigate fraud internally?
Yes, but it is often risky. Internal teams may lack the neutrality or experience required. Using an independent workplace investigation service such as Core Integrity provides a more robust and fair process.
How long does a fraud investigation take?
This depends on the complexity of the case. Simple matters may be resolved in a few weeks. Larger or more involved fraud cases can take several months.
What happens after an investigation confirms fraud?
The organisation may take disciplinary action, seek recovery of funds, report to authorities or strengthen internal controls.
Our Footprint in Australia – Areas we Serve
At Core Integrity, we pride ourselves on delivering comprehensive and tailored Workplace Investigations Services to ensure the well-being and ethical integrity of your organisation. With a commitment to excellence, our experienced team navigates the unique challenges of workplaces across diverse industries. From major cities to regional hubs, we extend our services across the entire Australian landscape, fostering a culture of transparency, fairness, and accountability. Our mission is to empower organisations to address issues proactively and cultivate a positive work environment. Choose Core Integrity for unparalleled expertise and a steadfast dedication to promoting workplace integrity nationwide.
Read more about our Workplace Investigation service:
- Workplace Investigation Services in South Australia
- Workplace Investigation Services in Queensland
- Workplace Investigation Services in Western Australia
- Workplace Investigation Services in New South Wales
- Workplace Investigation Services in Tasmania
- Workplace Investigation Services in the Northern Territory
- Workplace Investigation Services in Victoria
- Workplace Investigation Services in Adelaide
- Workplace Investigation Services in Canberra
- Workplace Investigations in Perth
- Workplace Investigation Services in Brisbane
- Workplace Investigation Services in Melbourne
- Workplace Investigations in Sydney
Let us answer some of your questions about Workplace Investigations…
Results we’ve achieved for clients
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Empowering Leadership: A Case Study in Fraud Prevention and Policy Awareness
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Sporting reporters reached out about historical assault, feeling helpless. We built trust, connected them with their organisation, and ensured they felt heard.
Developing a tailored Speak Up Integrity Hotline program for Bingo Industries
We partnered with Bingo Industries as an integrity-risk partner to develop and implement a Speak Up Integrity Hotline that supported Bingo’s values of working honestly and ethically.
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