Dealing with Business Fraud: Your Action Plan When Suspicions Arise

Hey guys, Nathan here.

Fraud in business is a serious matter that no one wants to face, but unfortunately, it can happen to even the most well-managed companies. As a business owner, it’s essential to know what steps to take if you ever suspect or realise that fraud is occurring within your organisation. In this blog, we’ll dive into the actions you should take when faced with this challenging situation.

Recognising the Signs

The first step in addressing fraud is recognising the signs. Here are some common red flags that may indicate fraudulent activities within your business:

Inconsistent Financials: Notice discrepancies in your financial statements or irregularities in your cash flow that can’t be easily explained.

Unexplained Expenses: Employees or contractors submitting expense reports that lack supporting documentation or seem excessive.

Changes in Behaviour: Sudden changes in the behaviour of employees or colleagues, such as becoming secretive or defensive when questioned about financial matters.

Missing Documents: Documents, receipts, or invoices related to financial transactions mysteriously disappearing.

Unusual Transactions: Unfamiliar transactions appearing in your bank statements or financial records.

If you observe any of these signs or suspect fraudulent activity, it’s crucial to act swiftly but cautiously.


Immediate Actions

Maintain Confidentiality: Keep your suspicions private. Prematurely accusing someone without evidence can harm your business and your relationships.

Gather Evidence: Begin collecting evidence discreetly. This may involve reviewing financial records, monitoring transactions, or consulting with professionals who specialize in fraud detection.

Consult with Legal Advisors: Reach out to legal advisors experienced in business fraud cases. They can guide you on the legal aspects of addressing fraud.

Engage a Forensic Accountant: A forensic accountant can help investigate the situation, trace financial discrepancies, and gather evidence to support your case.

Consider HR Involvement: If an employee is involved, consult with your HR department or professionals to ensure you follow proper employment procedures.


Investigation Process

The investigation process is critical in establishing the facts and determining the extent of the fraud. Here are key steps to follow:

Document Everything: Maintain meticulous records of all evidence, conversations, and actions taken during the investigation.

Interview Suspects: If necessary, conduct interviews with individuals involved, always with the guidance of legal advisors.

Engage Law Enforcement: In cases of significant fraud, involve local law enforcement or appropriate regulatory agencies.


Prevention Measures

Preventing fraud is as important as addressing it. Once you’ve resolved the issue, take proactive steps to prevent future occurrences:

Implement Financial Controls: Work with experts like NGR Accounting to establish robust financial controls that reduce the risk of fraud.

Regular Audits: Conduct regular financial audits to identify discrepancies early.

Employee Training: Educate your staff about the importance of ethical behaviour and the consequences of fraud.

Whistle blower Programs: Consider implementing a whistle blower program that encourages employees to report suspicious activities anonymously.

NGR Accounting’s Support

At NGR Accounting, we understand the stress and challenges that come with discovering fraud within your business. Our experienced team can assist you in both the investigation process and implementing preventive measures. We specialise in helping businesses like yours maintain financial integrity.

If you find yourself facing fraud or wish to protect your business from potential threats, don’t hesitate to reach out to us. We’re here to support you every step of the way.


Discovering fraud in your business is a tough situation, but taking immediate and informed actions is crucial. Remember to maintain confidentiality, gather evidence, consult legal professionals, and engage experts like NGR Accounting to navigate this challenging journey. We’re here to help you protect your business and its financial well-being.

Stay vigilant and proactive, and together, we can ensure the financial health and success of your business.

If you have any questions, please feel free to contact NGR Accounting at 02 9011 6669 or via email at


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Updated: 22nd September, 2023




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