Corporate Fraud And Liability

Guidance note on action items once fraud is detected

An investigation into alleged fraud can expose a company to risks that could result in financial and reputational damage and impact shareholder value. Once fraud is suspected or detected, prompt action is imperative to contain the fall out, address vulnerabilities and take action against perpetrators. Timing is particularly of the essence if reporting requirements (to regulators, law enforcement, customers etc.) are triggered by the fraud. That said, it is also important not to make disclosures without having all the facts at hand, which means the scope and pace of the investigation into the incident of fraud becomes critical. This article provides an SOP to guide actions once fraud is suspected or has been detected to support directors and companies in taking a proactive approach to addressing incidents of fraud.