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FEATURE

However, within the finance community, there is INVESTIGATE THE INVESTIGATOR
often a reluctance to share fraud data, whether
inter-bank or to a third-party service supplier. The private investigation industry is now recognized and utilized as a highly techni-
The well-worn excuse of not being able to di- cal and crucial element of the legal support and counter fraud fraternity – and as far
vulge information for data protection reasons removed from the old-fashioned stereotype of a private eye wearing a long overcoat
is given regularly by organizations that should and carrying a magnifying glass as you can imagine! There is no better demonstration
know better. There are plenty of adequate rea- of this than the private sector’s involvement in investigating insurance fraud – interna-
sons for data disclosure when referring matters tional insurance companies instruct the private sector to assist in counter fraud surveil-
to a third-party supplier and there is nothing lance operations on a daily basis.
more frustrating than being instructed on a case
without being in possession of the full facts. Edu- But of course, before engaging with any private sector investigator it is essential to
cating the industry on what data can be shared, carry out a thorough and rigorous procurement and due diligence process. Any private
particularly when processing for legitimate in- investigation business hoping to feature in the plans of a blue-chip insurance company
terest purposes is beyond dispute, would be or banking institution must have demonstrated its commitment to the highest of indus-
welcomed; perhaps this is an area in which the try standards. This will typically require the achievement and existence of the requisite
regulator has a role to play. ISO standards, data security, and cyber essentials accreditations. As a minimum re-
quirement, the investigator should also belong to an industry body that has regulatory
recognized Codes of Ethics. This might include the Association of British Investigators
(ABI) or the World Association of Detectives (WAD).

With finance fraud showing no sign of receding, leveraging the experience and exper-
“Financial crime accounts tise of a high-quality private sector investigation business is a fast-track way for firms to
for approximately 40% take real action against the fraudsters.
of all current crimes in
the UK. The Victims’ 1https://victimscommissioner.org.uk/news/who-suffers-fraud/
Commissioner report 2https://www.finextra.com/blogposting/23524fraud-increases-among-neo-banks---whats-
goingwrong---and-how-can-banks-mitigate-risk
reveals that, despite this,
only 2% of policing power This article is included in CeFPro’s iNFRont Magazine, Issue 7
is currently dedicated to - A 20+ page Non-Financial and Operational Risks publication
Get your free copy magazine here,
fighting this kind of fraud.” or visit www.cefpro.com/magazine

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