What is the first step in any fraud investigation?

The first step in any fraud investigation is gathering evidence. This phase is crucial because collecting relevant evidence sets the stage for the entire investigation process. It allows investigators to establish a foundation of facts that can guide their subsequent actions and decisions. By starting with evidence collection, investigators can identify the parameters of the fraud, understand how it may have occurred, and determine who may be involved.

Gathering evidence can include collecting physical documents, electronic records, and other materials that may provide insights into the situation at hand. It helps to outline the scope of the investigation and identifies the potential sources of fraud. Once evidence is collected, it can then be analyzed, which may include reviewing financial records, but that is dependent on the evidence collected. Without first gathering evidence, proceeding with analysis or interviews would be premature and may not yield useful results.