Fraud / Corruption Prevention and Detection

Fraud and corruption can take a range of forms, including bribery, diversion of assets, money laundering and engaging in illicit commerce or trade with entities under sanction. When these breaches are identified, it is essential to quickly and efficiently identify how they occurred, the responsible parties involved and the steps necessary to remediate the situation and prevent further transgressions. 

Kroll is a leader in helping companies and governments mitigate and respond to fraud and corruption risk. Our global team combines the expertise of former regulatory officials, forensic accountants, compliance professionals, data analysts and business intelligence professionals, along with experts in cyber security, counterfeiting and intellectual property (IP) theft, social media analysis, sanctions and other areas. This breadth of resources and experience allows us to conduct comprehensive end-to-end investigations, regardless of how or where in the organization the breaches occur. Our international network of offices and contacts gives us local knowledge and capabilities in jurisdictions around the world, enabling us to uncover fraud and corruption in emerging or frontier regions that can be challenging for outsiders to navigate. 

We help organizations combat fraud and corruption risk in multiple ways:

• Fraud and Corruption Prevention: We use advanced risk assessment and data analytics to help identify and assess risks across an organization, whether due to inadequate compliance, ineffective physical or cyber security, misaligned incentives or problematic corporate culture. We then work with the appropriate functional leaders within the organization to design and implement effective solutions.
• Fraud and Corruption Detection: When fraud or corruption is suspected, we analyze data, transactions and asset flows to identify and investigate anomalies. We work collaboratively with internal resources, providing additional specialized expertise and an independent third-party validation of their work and conclusions.
• Fraud and Corruption Investigation and Recovery: Clients call on us to investigate their most complex and cross-border issues, including those requiring time-sensitive decision making and the quick recovery of funds and stolen assets. We frequently work closely alongside internal and external counsel, providing them the information they need in establishing facts, filing motions and making regulatory disclosures. Our proprietary methodologies and controls ensure that we adhere to all relevant supranational, national and local laws, as well as guidelines of professional practice and rules of evidence. 

Case Study – Fraud Risk Analysis

A multinational manufacturing and retail company suspected fraud in its procurement division that involved several of the company’s Africa operations. Kroll was brought in to investigate.

We conducted a transactional risk review across three years of financial data for six legal entities. Our analysis was used to prepare the company’s internal investigations team to conduct on-the-ground interviews. The fraud risks detected were used to recommend improvements to procurement controls and internal reporting to the head office.

Case Study – Enterprise-Wide Fraud Risk Assessment

A UK utilities provider with a billion pounds in annual turnover was concerned about fraud in its operations. The company turned to Kroll to conduct an enterprise-wide fraud risk assessment. 

We began by analyzing the financial records of the utility’s services business units to identify potential areas of fraud risk. This was followed by a more targeted investigation, and fact-finding interviews with key members of the senior management team. 

We then provided recommendations for improvements to key internal controls and measures to prevent and detect fraud, regulatory requirements to assess fraud risk and organizational and operational structures.

Case Study – On-Site Investigation of Internal ABC Controls

A global manufacturer of medical equipment suspected that sales executives had engaged in bribery to win lucrative government contracts. The company’s U.S.-based legal counsel engaged us to investigate. 

Our team conducted an on-site investigation of internal controls. We also discreetly collected from company systems six years of sales and payment data across several jurisdictions and conducted sophisticated data analysis to identify unusual patterns in equipment sales. 

Our analysis uncovered payments that had been hidden within a reserve account in the company’s accounting system. A follow-up on-site document review and interviews with company employees confirmed that the obscured payments were made to government employees to secure sales contracts.