Investigating cheque and credit card fraud etc Flashcards
What to ask accounts manager at the bank where the account is domiciled?
- account holders full name, occupation, address and telephone number
- the date that account was opened
- the account history and how it was operated
- the date the cheque book or credit card was reported missing
- how and by whom the loss was reported
- the serial numbers of any missing cheques
When an account was opened with fictitious details, find out…
- the account number and date it was opened
- the nature and amount of the first deposit
- details of any other deposits
- the details used when the account was opened
- descriptions of the suspect and any of their associates at the time
- the serial numbers of the cheques supplied
Obtain a sample of…
the suspects handwriting from bank documents
When cheques are dishonoured through lack of funds, interview the account holder and obtain a statement that includes…
- the suspects full name, address, occupation and age
- the date the account was opened
- the nature and amount of the first deposit (cash, tax refund, stolen cheque etc)
- details of any overdraft arrangements
- general pattern of how the account has been operated
- Details of the dishonoured cheques and the people or firms defrauded.
When handling documents that may need to be examined by fingerprints or document section, do not…
- punch, fold or crease them
- use staples, pins or Sellotape
- make impressions on them when writing minutes on the file
You must place them on file in a clear plastic bag
What to find out from suspect when interviewing
- knowledge of the state of their account
- expectation of funds
- overdraft arrangement, if any
Obtain a handwriting sample
Company deception - Category A
Large scale thefts and other dishonesty offences against employers by employees - usually managers and accountants using their position to manipulate the company’s financial system.
Offences usually:
- using a document
- theft by person in special relationship
- altering, concealing, destroying or reproducing documents
- accessing computer for dishonest purposes
- forgery
In these cases, ID of suspect is usually known and purpose of investigation is to prove offending.
Company deception - Category B
Dishonest offences committed against financial institutions by people outside the institution obtaining money from it through deception. It also includes GST deception against IRD by businesses that make false GST returns.
This may be the operator of the business, or an employee who covers misappropriation of money from their employer by obtaining fraudulent GST refunds to replace the money the employee has stolen.
Offences usually:
- false statement by promoter
- dishonestly taking and using a document
- accessing computer for dishonest purposes
- forgery
- false accounting
Company deception - Category C
Commercial deception committed against the public by people who, either as individuals or through the guise of a company, entice people to invest money.
Offences usually:
- false statement by promoter
- obtaining ownership, possession or control by deception
- obtaining credit by deception
ID of suspect company is usually known and its principal is often known, and the purpose of investigation is to prove offending by:
- confirming company details
- interviewing victims
- identifying, through the victims transactions, the details of the suspect company’s bank
Company deception - Category D
Dishonesty offences committed by professional people in a position of trust, such as solicitors and accountants, against their clients.
Offences usually:
- theft by person in special relationship
- dishonest taking or using documents
- using forged documents
Identity of suspect already known, and a professional body may have already carried out an enquiry. Usually be a paper trail to follow, although it may be complex. Prove offending by:
- putting together the paper trail
- gathering documentary exhibits
- interviewing appropriate clients
- interviewing suspects
Types of assistance for investigation company deception
- Police accountants and legal section
MBIE:
- Registrar of companies
- Companies office
- Official assignee
- Insolvency services
Commerce commission
Financial markets authority
NZ customs
When must the Serious Fraud Office be notified of an investigation?
- All fraud complaints with an actual or potential loss in excess of 2 million.
- Fraud complaints where the facts, law or evidence is of great complexity
- Any fraud complaint of great interest or concern, ie a public figure
Can the SFO make arrests?
No, they have no power of arrest. If they need someone arrested, they will contact the District Crime Manager who will provide assistance with a CIB member to make the arrest.
Making arrest for SFO without a warrant
SFO must provide CIB with a written report that outlines the sufficient level of evidence
Making arrest for SFO without a warrant
SFO must provide CIB with a written report that outlines the sufficient level of evidence necessary to make an arrest. This includes providing any key documentary evidence for inspection.
The report must identify the rationale for arrest as opposed to summons.
CIB officer must be satisfied that appropriate grounds exist for arrest.
The SFO prepares and files the hard copy charging documents.
