Investigating Frauds and the Red Flags for Possible Frauds

Financial Fraud
Student's Name
Institution
Instructor
February 20, 2021
Financial Fraud
How would you investigate fraudsters without their knowledge?
One way of implementing an investigation without a fraudster's knowledge is using a person or an employee who is close to the employee involved in fraud. From the company research I conducted, the employee involved in fraud is the Wirecard Company CEO. It would be hard to get access to the company's file without the consent of a CEO. As such, I would investigate all the company officials who are close to the CEO and profile them to determine who among them is suspicious of the CEO's fraudulent activities. I would also evaluate the CEO's family members to establish if anyone is aware of the fraud carried out by the CEO. Family members have proved useful in unraveling fraud cases. For instance, a family member (Bernie's son) reported the Bernie Madoff scandal of 2008 (Azim, M. & Azam, 2016). After evaluating these individuals, I would establish the most collaborative individual I can recruit to monitor the fraudster's activities. This strategy is significant since everyone has close confidants with whom they share secrets.
The second investigative strategy I would utilize is evaluating an individual's lifestyle changes. With the current age of information, it is easy to observe patterns for an individual's lifestyle changes. Many CEOs are extroverted individuals who like sharing their lifestyles with the public. Using social media sites such as Facebook and Instagram, it would be easier to observe the fraudster's suspicious lifestyle changes. In this case, I would extend the investigation to family members and friends. Investigating family members' and friends' lifestyle changes are necessary since they are most likely among the crime beneficiaries. For example, at the peak of the famous Tyco financial scandal of 2002, the company CEO Dennis Kozlowski organized a $2 million birthday party on an island for his wife (Enobong, 2017). This is an example of an abrupt lifestyle change that would trigger fraud suspicions.
What are the best technological options for investigating financial fraud?
Cell phones are the best devices an investigator can take to collect sufficient data on a fraudster. In the current digital age, everyone considers cell phones as a necessity. An instigator can obtain a wide range of information from a fraudster's cell phones. The currently popular smartphones record received and missed calls received and sent text messages, voice mails, e-mails, GPS information, and images and videos (Albashrawi, 2016). All this information is important in investigating fraud. For instance, the communication data in the form of calls, messages, and e-mails can help gather information on fraudulent activities. As Albashrawi (2016) asserts, GPS information can provide the investigator with data to place the suspect in a particular location at a given time. Unfortunately, legal hurdles prohibit the infiltration of individuals' cell phones without due legal process. For instance, the Fourth Amendment protects individuals from unnecessary searches and seizures. However, with legal orders such as the Title III wiretap order, I can carry out my investigation usin...