Suppose you are the CEO. You are informed of an anonymous report about possible fraud occurring in your company and aren’t sure how to handle it. When allegations like this arise, it’s natural to want to get to the bottom of the situation. However, you should tread lightly. Here are some things to consider.

Consider whether you should contact legal

Depending on the nature of the allegation, it could be beneficial to contact your organization’s legal department or attorney. They can help give recommendations on next steps and help prepare for potential litigation. Consider having your attorney engage any experts or consultants to establish attorney client privilege.

Determine who should look into the matter

It is beneficial for organizations to maintain a fraud response plan. Essentially a playbook when an allegation of fraud occurs. As the CEO, it is probably best to distance yourself from an investigation because otherwise, you may become part of the case, which typically is not a good thing. Your plan should layout who would coordinate an investigation and how it would be conducted.

Keep the allegation confidential

You may want to find out as much information as you can, it is only natural, however think twice before openly discussing the matter. You don’t know who might be involved, tipping a suspect off as to the allegation should be avoided. Furthermore, it is unadvisable to spend time trying to figure out who reported the matter anonymously.

Call in the experts

Consider whether you would benefit from an outside expert who could coordinate the investigation on behalf of the organization. Investigations are much more complex than one would think. From evidence, to interviewing to project management many things can go wrong quickly. Call Breon & Associates today to discuss your fraud response plan or how we can help with your organization’s investigations.