Mitigating The Company's Risk After An Employee Fraud

Article 2 of 4: Employee Fraud Series

Your company has received an allegation that one of its employees has stolen from it and has now completed the steps discussed in our first article – Managing Corporate Risk When Employee Fraud is Suspected. The company is satisfied the allegation has merit and has preserved a forensic copy of the company's data. So, what are the next steps?

This article will discuss the steps involved in conducting an independent forensic investigation, preserving the company's data and evidence, and obtaining remedies in court to protect the company's interest pending a potential judgment against the employee. We note that this article is focused on situations involving larger frauds perpetrated by employees and may not necessarily apply to smaller cases of employee dishonesty. Each company will need to tailor its approach to its specific situation and weigh the costs of further steps against the anticipated benefits.