Question

This chapter discussed techniques for conversion investigations that involve searching public records to identify changes in lifestyle and the net worth of alleged fraud perpetrators. You recently became a certified fraud examiner (CFE) and have joined a local fraud examination firm. Your manager explains how he prefers to work with private sources of information and not involve local law enforcement agencies in the conversion investigation stage of his cases. You disagree and feel that local law enforcement can be an excellent resource. Discuss the advantages and disadvantages of involving law enforcement agencies in your fraud investigations.

Answer 1

Advantages of local law enforcement agencies for fraud investigations:

1. The local bodies have a very well spread network of contacts as they generally supervise over a small operational area. Thus it is easier for them to know about minute details of a particular matter which makes it much more convenient to solve the case and come to a logical, unbiased decision in a relatively shorter period of time.

Disadvantages of local law enforcement agencies for fraud investigations:

1. Since these are not strictly regulated and operate in a small scale, it could be possible for external and higher sources working along with the fraudulent parties to put undue pressure on them so as to aid them in highlighting irrelevant information or, in some cases, even hide information important to the case to save the involved parties.

2. They might not be equipped with the quality of skill sets required to analyse a situation in a macro sense and might make it even more difficult for the fraud examination firm to move forward with the case.

3. It might be very difficult for them to co-ordinate with the other fraud examining firm and friction in communication may strain relations between them.