Automated fraud detection has been found to be particularly bene cial when conducted annually. Annual analysis not only allows an Case study: Vehicle over-servicing Unsatis ed with the operating costs of its vehicle eet, particularly relating to vehicle maintenance, the organisation approached external analysts to undertake a data review speci cally over vehicle maintenance payments. An analysis of all electronic maintenance data for the entire vehicle eet over a three year period was undertaken. Several anomalies were detected, including apparent overservicing of vehicles and vehicles serviced with either no labour costs or no parts costs. The eet provider was able to revisit the service provider agreements with the intention of terminating the relationship with the vehicle maintenance provider. 25 n o i t a g i t s e v n i d u a r f e v i t c e f f E 26 Effective fraud investigation A step-by-step plan 4 27 n o i t a g i t s e v n i d u a r f e v i t c e f f

E 28 Fraud investigations are not like standard police-type investigations into criminal activity. This is because the majority of fraud investigations begin only with a mere suspicion that a fraud has occurred. In many cases, there is little initial evidence of that fraud, as the nature of most fraud is such that deception is involved in committing and then covering up the crime. However, it is also true that most frauds leave a trail, or a series of indicators which suggest a fraud has occurred. The key is to locate those indicators as early as possible in the investigation. Fraud investigation resources generally fall into four categories or skill-sets. In the majority of cases, most if not all of them are required to fully investigate a suspected fraud. These skill sets are illustrated and described below: Forensic accounting/ transaction analysis Investigative intelligence and analysis Investigation report and recommendations Computer forensics Fieldwork and interviews

Investigation resources Investigative intelligence and analysis This is the research component of the investigation. It involves experts in publicly sourced information obtaining relevant information concerning individuals and entities suspected of involvement in the fraud. This is one of the rst steps taken in an investigation where a suspect has been identi ed. Investigative researchers will quickly identify, for example: directorships and shareholdings in private companies in Australia and overseas mentions in the global media bankruptcy and disquali cations by regulators court judgments asset holdings.

Forensic accounting/transaction analysis Forensic accountants are a vital piece of the investigation puzzle, as they are responsible for quantifying and evidencing identi ed fraudulent transactions. This can be a challenge in situations where the suspects themselves are skilled accountants and have knowledge of the nancial system. Often, a forensic accountant will need to piece together incomplete or deliberately falsi ed nancial records. Section 6 has further details about this. Forensic accountants may also be required to calculate losses and damages and prepare insurance claims. You can read more about this on pages 32 and 33 under `Fidelity insurance.