Fraud investigations gone wrong

Failures in fraud investigations can hinder the pursuit of justice and the deterrence of fraudulent activities. The author examines two case studies that illustrate the immense impact that botched investigations can have on individuals, organizations and society.

When conducted properly, fraud investigations are critical to uncovering illicit activities that can have significant consequences for individuals, organizations and society. The Association of Certified Fraud Examiners’ (ACFE) Code of Ethics requires Certified Fraud Examiners (CFEs) to exercise diligence and professionalism during investigations. A poorly conducted investigation not only erodes public trust in investigative bodies and the justice system, but it can also embolden fraudsters to continue their illegal activities. (See “Code of Professional Ethics,” ACFE.)