Conducting Internal Investigations

Transcription

1 Conducting Internal Investigations External Evidence Retrieval 2018 Association of Certified Fraud Examiners, Inc.

2 External Evidence Retrieval External evidence is often needed to prove a case. External sources include both public and nonpublic records Association of Certified Fraud Examiners, Inc. 2 of 27

3 Public Records Public records are one of the most encompassing, challenging, and rewarding sources of information. Many are accessible online. Some are available for free or at nominal cost, but others require a subscription, which can be costly. Examiners should use several sources of public information Association of Certified Fraud Examiners, Inc. 3 of 27

4 Public Records Basic to a records search of an individual: Name Date of birth Government ID number Last known address 2018 Association of Certified Fraud Examiners, Inc. 4 of 27

5 Public Records Local Voter registration Marriage license Real property Property tax Health and fire departments Local prosecutor Utility company Permits 2018 Association of Certified Fraud Examiners, Inc. 5 of 27

6 Public Records The Courts Litigation history District and local court (criminal and civil) Divorces Personal injury suits Financial suits Bankruptcy records Probate records 2018 Association of Certified Fraud Examiners, Inc. 6 of 27

7 Public Records State or Province Business filings Foreign corporation registrations Corporate registrations Employee/labor records State or province tax filings 2018 Association of Certified Fraud Examiners, Inc. 7 of 27

8 Public Records State or Province Professional associations and licensing boards Medical practitioners Stockbrokers Attorneys and lawyers Teachers Certified accountants Insurance agents Real estate licensees Private investigators Notaries 2018 Association of Certified Fraud Examiners, Inc. 8 of 27

9 Public Records Other Financial statements and other filings Available from the SEC for publicly traded companies Publications Newspapers Periodicals Journals Databases 2018 Association of Certified Fraud Examiners, Inc. 9 of 27

10 Online Searches Using Database Vendors Commercial database vendors Accurint InfoUSA IRBsearch CSC TLO Dun & Bradstreet Hoover s LexisNexis DCS Information Systems Kompass 2018 Association of Certified Fraud Examiners, Inc. 10 of 27

11 Online Searches Using Database Vendors Limitations of online database searches: Coverage varies widely. Geographical area or time frame might be limited. Online records are brief abstracts of originals. Information must be verified. Search engines are erratic in retrieval Association of Certified Fraud Examiners, Inc. 11 of 27

12 Internet Sources Search engines Google Yahoo Bing Ask DuckDuckGo Dogpile 2018 Association of Certified Fraud Examiners, Inc. 12 of 27

13 Internet Sources The Internet Archive (archive.org) Social networking sites The actual sites (e.g., Facebook, Twitter, LinkedIn, Instagram, etc.) Social network search tools (e.g., Pipl, Spokeo, Yasni, Yatedo) 2018 Association of Certified Fraud Examiners, Inc. 13 of 27

14 Collecting and Preserving Online Evidence Challenges: Here today; gone tomorrow Can be easily altered or destroyed Can change with use or when turning computer on or off Can be altered when saved or viewed 2018 Association of Certified Fraud Examiners, Inc. 14 of 27

15 Collecting and Preserving Online Evidence Capture information upon discovery; it might not exist later. Record the website and pathway. Capture original information: Take screenshots. Save a file of the website and its links. Print a copy of the website and information shown. Mark all evidence in a unique manner for identification. Create summary of information on website Association of Certified Fraud Examiners, Inc. 15 of 27

16 Collecting and Preserving Online Evidence Date and time stamping: Need to verify date and time might not be set to correct time or time zone. Use the Save-As function to capture the Web page and its embedded files. Save a copy onto thumb drives for backup and document review. Verify the information captured. Test the function Association of Certified Fraud Examiners, Inc. 16 of 27

17 Collecting and Preserving Online Evidence View source information. HTML source and metadata information can provide additional information. Techniques can obscure the HTML source while still allowing normal website viewing: Google Press CTRL + U keys. Safari Press Command + Option + U keys Association of Certified Fraud Examiners, Inc. 17 of 27

18 View Source Information 2018 Association of Certified Fraud Examiners, Inc. 18 of 27

19 Might also contain valuable information Might be difficult or impossible to obtain unless the source voluntarily turns them over or the court issues a legal order Nonpublic Records 2018 Association of Certified Fraud Examiners, Inc. 19 of 27

20 Bank Records Perhaps the single most important type of external financial source. In most cases, banks records cannot be obtained without a subpoena or other legal process Association of Certified Fraud Examiners, Inc. 20 of 27

21 Bank Records Records that examiners should review include: Account opening documentation Monthly account statements Disbursements from the account Loan files Safe deposit box records Currency transaction reports (CTRs) Bank collection department records Mortgage loan files 2018 Association of Certified Fraud Examiners, Inc. 21 of 27

22 Stock Brokerage Records Look for the sources of funds used to purchase securities and cash deposits. Examine checks paid by the brokerage house to the account holder Association of Certified Fraud Examiners, Inc. 22 of 27

23 Tax Documents Might provide indirect evidence of illicit payments. Might also show deductions and expenses, such as real estate taxes, which might lead to previously unknown funds or assets. Subject s accountant and tax preparer should also be interviewed, and their files and work papers subpoenaed, if possible Association of Certified Fraud Examiners, Inc. 23 of 27

24 Other Nonpublic Records Credit reporting agency records: Detailed reports available only by court order, consent of consumer, or legal exception Telephone records 2018 Association of Certified Fraud Examiners, Inc. 24 of 27

25 Other Nonpublic Records Credit card accounts: Track travels. Evaluate expenditures. Identify high debt as a motive. Identify hidden assets Association of Certified Fraud Examiners, Inc. 25 of 27

26 Other Methods Covert operations Surveillance Informants Dumpster diving 2018 Association of Certified Fraud Examiners, Inc. 26 of 27