Internal fraud

LGC Forensics were engaged by a large communications company to assist with the investigation of a suspected internal fraud. There were suspicions that a purchasing manager was diverting payments to suppliers elsewhere, however the person involved was clever and hid their tracks very carefully, so little progress had been made internally on the investigation of the circumstances. Similar frauds had occurred in the company before and they had good grounds to suspect the current purchasing manager due to intelligence from co-workers that the manager appeared to maintain a lifestyle that did not match their position, with expensive extensions to their home and a holiday home in Southern France.

LGC forensic specialists examined several computers and a mobile phone supplied by the client and initially nothing out of the ordinary was found. However a more detailed analysis of emails, contacts, call records and accounting records implicated several other employees of the company as also being involved in the creation of fictitious supplier accounts and making payments into, what turned out later, to be personal accounts. Losses to the client ran into hundreds of thousands of pounds and had financed some expensive private habits, e.g. cars, houses and holidays, for those involved. The frauds had been engineered by many people over an extensive period of time with knowledge of the company systems and access permissions handed down as people moved on or were fired.

The investigation led to the successful prosecution of those involved and finally put an end to the frauds that had plagued the client's purchasing department once and for all. The lesson that was learnt was – never promote someone internally when a person has been fired on suspicion of fraud – the promotee may be in on it!