Corporate fraud and how Blackhawk Intelligence can help

With so many techniques to commit fraud available today, protect your company against fraudulent activity is more important than ever.

Companies today enjoy a considerable latitude of freedom to regulate their own internal affairs as long as they comply with legal duties. Yet not every company has robust rules to govern its operations and prevent corporate fraud and financial fraud from happening. If you suspect something sinister is happening in your organisation, give our fraud investigators a call on +44 (0)20 8108 9317.

Types of corporate fraud

Corporate fraud comes in all shapes and sizes. It can be a type of financial fraud with the real temptation lies in finance, sales and procurement departments. It can also happen in the board room when individuals in control decide to commit fraud, or when assets have gone missing in your data centre or at the warehouse.

In essence, corporate fraud is any type of fraud committed against a company or when a company’s directors or employees knowingly use the company as a vehicle to commit fraud. While internal staff are often the masterminds in most of the corporate fraud cases we handle, there are also instances where external parties are involved.

Examples of corporate fraud can include but not limited to:

• Employee theft (money, products, data, intellectual property etc.)
• Accounting fraud
• Tax evasion
• Insider trading
• Bribery or corruption
• Money laundering
• Bankruptcy offences
• Unlawful use of company property to create a liability or cause a loss
• Running ‘Ponzi’ or pyramid investment schemes
• Selling fraudulent goods as the real thing
• Making or using false, forged or falsified documents to fool suppliers, clients, banks or the authority

External parties can be involved too

While most corporate fraud cases involve internal staff, corporate fraud can be committed by external parties aided by corrupt or unsuspecting internal employees.

Theft is an epidemic

Everyone knows that stealing is wrong, yet theft committed by employees happens in almost every company. In most instances the damage is small, like when an employee takes home a stapler from the office. But when an employee regularly ‘forgets’ to record a friend’s purchase, uses corporate cards for personal gain, or helps themselves to high-value items or easy-to-conceal products in the warehouse, you may be looking at tens of thousands of pound loss in revenues.

Data theft is also on the rise as data are easily available to employees (with a few clicks of a mouse) and are valuable, especially when they are in the hands of a competitor or a fraudster. There was a case where an employee downloaded over a million customer data and sold them on to a relative who is setting up a similar business. Another case involved an employee stealing sensitive research data for a competitor. The individuals involved in both cases were after money, but sometimes employees can steal to get revenge or because ‘it is fun’.

Accounting fraud is growing

Employees holding positions of power and trust, usually at the top of the corporate ladder, are in the highest risk category when it comes to accounting fraud. Because they may in leadership positions for a while, they tend to perpetuate their crimes longer and stealing more money than theft committed by employees at lower levels.

Most accounting fraud cases that hit the news involved billions of pounds, leaving smaller companies thinking that the possibility of an accounting scandal happening in their organisation would be minimum. But the truth is no organisation is immune to accounting fraud. After all, not making headlines doesn’t mean no crime is being committed.

For more information, follow the link to the accounting fraud page.

The negative effects of corporate fraud

In smaller-scale fraud, a company stands to lose money, inventory, and one of its most valued possessions – reputation. Reputation can take a particular hammering if customer data are stolen and sold on the dark web. It can take a long time to rebuild the trust you have had with your customers. At the same time, the company is likely to face GDPR penalties and other legal issues.

If the damage is significant, chances are the company may suffer a loss of share price, going into liquidation or being taken over, along with their directors facing fine or imprisonment.

It also costs time and money to detect fraud. The process will also undoubtedly dampen staff morale and reduce productivity.

Blackhawk Intelligence investigates corporate fraud

At Blackhawk Intelligence, we have a team of investigators helping companies in the UK and across the world with corporate fraud management and detection.

Corporate fraud management refers to the assessment, control and prevention of fraud, often done through real-time data analytics and machine learning that can monitor transactions to detect fraud or other criminal activities.

Corporate fraud detection is about establishing what type of fraud has happened, how it was done, and who was the perpetrator. We help clients to detect fraud by using our investigative, computer forensics and forensic accounting skills.

Why choose Blackhawk Intelligence

Our investigators and the forensic team have the expertise to handle every corporate fraud case, be it large or small. The benefits of working with us include:

1. Data integrity is preserved

In every fraud investigation, the process we undertake is highly structured with an emphasis on preserving the data. We do this so you can recover stolen assets, take disciplinary action against the perpetrator, make an insurance claim, or take legal proceedings. Beware that compromised data would be denied in court and you could lose your case, along with money and reputation which you have sought to restore.

2. Experience and knowledge

Our team of investigators and forensic accountants are specialists who have the knowledge and experience, as well as access to the latest tools needed for capturing and containing the evidence.

3. Discreet

Respecting confidentiality is critical to any investigation. When we interview witnesses and parties of interest, we maintain a highly professional and discreet approach.

4. No conflict of interest

Companies rely on us to handle their corporate fraud investigations because they need a fair, balanced and independent company. With us working on the case, your directors and employees are free from allegations of unfairness.

5. Cost-effective

We aim to provide you with a cost-effective solution with no hidden charges. Also, we give you a plan before you decide to hire us.

Call our corporate fraud investigators today on +44 (0)20 8108 9317.

Prevention is key

Prevention is at the heart of corporate fraud management. In this area, we review the likelihood of fraud in your organisation and if an automated fraud risk assessment can help your company to detect irregularities.

It must be noted that there isn’t a one-size-fits-all approach as fraud risks are unique to each organisation and the sector they are in. By engaging our team, we can help your company to identify relevant fraud risks, and design and implement a fraud management program which aims to prevent and detect fraud. The purpose here is to improve the effectiveness of your internal controls, thereby saving you time and money.

Call us today on +44 (0)20 8108 9317 to kick-start a conversation.