Fraud investigation is a structured process used to uncover and prove fraudulent activities within an organization or against it. These investigations aim to determine whether fraud has occurred, identify the responsible individuals, assess the extent of the damage, and gather evidence for potential legal or disciplinary action. Fraud typically involves intentional deception for personal or financial gain and can manifest in many forms—such as financial statement fraud, embezzlement, identity theft, insurance fraud, procurement fraud, or cybercrime.

A fraud investigation often begins when suspicious behavior, unusual financial activity, or whistleblower complaints are detected. Investigators analyze documents, conduct interviews, trace assets, and use forensic accounting methods to identify irregularities. The goal is not only to uncover the fraud but also to determine how it happened, what controls failed, and how to prevent similar incidents in the future. Effective fraud investigations are crucial for protecting a company’s finances, reputation, and compliance with legal and regulatory requirements.