If you or your managers suspect fraud is occurring in your organization, you can’t afford to wait to act. According to the Association of Certified Fraud Examiners, the longer an occupational fraud scheme continues, the more it will cost the company a significant amount. So, any suspicion should result in hiring a forensic accountant to investigate.

During an investigation, these professionals generally interview potential suspects and witnesses. But before they do, you should attempt to gather some basic facts by talking to employees who might know something.

Before You Speak …

Before you interview anyone, consult your attorney to ensure you don’t create a legal liability. Then, decide what information you’re looking for. Knowing what you want helps you get to the truth of the matter quickly and avoid getting sidetracked by extraneous information. Then, identify who’s best able to supply that information.

Say, for example, you think an accounts receivable employee might be siphoning money. Talk to that person’s supervisor about typical work habits and any unusual behavior. Also, speak to the manager of your IT department about possible signs of file tampering or other misuse of your company’s tech resources. Keep in mind that people may be reluctant to share information if they think it reflects poorly on them or if it might get a colleague in trouble.

At The Table

Set the tone with some introductory questions and ask the interviewee to agree to cooperate. In most cases, you’ll be looking for information that helps prove or disprove your suspicions, and the interview will be fact-finding in nature. It should last long enough for you to obtain all the information the subject has to offer. But don’t prolong sessions unnecessarily.

Aim for an informal, relaxed conversation and be sure to remain professional, calm, and nonthreatening. Don’t interrupt unnecessarily, suggest that you have preconceived ideas about who did what, or assert your authority unnecessarily. If you suspect someone is withholding information, try asking more detailed questions. And if the employee says something you believe is untrue, ask for clarification. You might suggest that your question was misunderstood or that the person didn’t give it enough thought before answering.

Finally, never make threats or promises to encourage an employee to change a statement or confess. If the case ends up in court, such tactics could make the evidence you collect inadmissible. If someone persists in lying, ask them to put their statement in writing and sign it. Then turn the statement — and your suspicions — over to a forensic accountant.

Other Information

You may be tempted to gather information by viewing a potential fraud perpetrator’s text, email, and phone records. Make sure you talk to legal counsel first. Although employers generally can view employee messages on employer-issued devices, workers also enjoy an expectation of privacy in certain circumstances. You want to help ensure that any information you collect will be admissible in court (if the incident ends in a criminal or civil action). Contact us immediately if you suspect an employee is committing fraud.