Question

Is it ethical for a fraud investigator not to include something in a report that she believes to be true and that would help her client but would increase the chances of the perpetrator filing a lawsuit against her? Why or why not?

Answer 1

Ans:

It depends on what information they have. If it involves telling the name of the person then it is ethical that the fraud investigator not include it in the report. If it also involves wording that would implicate a specific person they should not include it as well.

A fraud investigator can be sued for defamation if they specifically address a person by name. They can use things like the bookkeeper put this in her purse or it is “consistent with fraud”.

The fraud investigator is there to present the evidence and back it up with evidence and documentation. If they don’t include something in a report because there isn’t sufficient evidence or could basically accuse a person then it is ethical to not include it.

If an investigator is accused of defamation they could also lose their insurance liability carrier.

Note:

1. A fraud investigator should always rely upon evidence and facts, but if something is suspicious, the fraud investigator can use their years of expertise and ingenuity to further investigate when seemingly no evidence supports any fraud.

1. Fraud investigator would be utilizing scientific method to test efficacy of their hypothesis and determine if something could fail to be proven true or if evidence existed to provide a basis for truth.