--- title: Tips For Investigating Employee Fraud Leads description: When an employee reports suspicious activity, you have an obligation to investigate. Follow these best practices for handling fraud leads effectively. image: https://www.brinkersimpson.com/hubfs/3-Mar-20-2024-06-16-02-7150-PM.png --- [610-544-5900](tel:+16105445900) • [contact@brinkersimpson.com](mailto:contact@brinkersimpson.com) [Client Portal ](https://www.securefirmportal.com/Account/Login/4874) [Pay Now ](https://www.brinkersimpson.com/pay-online) [Brinker Simpson ](https://www.brinkersimpson.com/) - [ Services ](https://www.brinkersimpson.com/services) - [ Strategic Advisory ](https://www.brinkersimpson.com/services/strategic-advisory) - [ Accounting Support ](https://www.brinkersimpson.com/services/accounting-support) - [ Tax Services ](https://www.brinkersimpson.com/services/tax) - [ Audit and Assurance ](https://www.brinkersimpson.com/services/audit-assurance) - [ Transaction Advisory ](https://www.brinkersimpson.com/services/transaction-advisory) - [ Valuation Services ](https://www.brinkersimpson.com/services/valuation) - [ Risk Advisory ](https://www.brinkersimpson.com/services/risk-advisory) - [ Peer Review Services ](https://www.brinkersimpson.com/services/peer-review) - [ About ](https://www.brinkersimpson.com/about) - [ People ](https://www.brinkersimpson.com/about/team) - [ Community ](https://www.brinkersimpson.com/about/community) - [ Industries ](https://www.brinkersimpson.com/industries) - Resources - [ Articles ](https://www.brinkersimpson.com/resources/articles) - [ Newsletter ](https://www.brinkersimpson.com/resources/newsletter) - [ Careers ](https://www.brinkersimpson.com/careers) [ Let's Connect ](https://www.brinkersimpson.com/contact) - [ Services ](https://www.brinkersimpson.com/services) - [ Strategic Advisory ](https://www.brinkersimpson.com/services/strategic-advisory) - [ Accounting Support ](https://www.brinkersimpson.com/services/accounting-support) - [ Tax Services ](https://www.brinkersimpson.com/services/tax) - [ Audit and Assurance ](https://www.brinkersimpson.com/services/audit-assurance) - [ Transaction Advisory ](https://www.brinkersimpson.com/services/transaction-advisory) - [ Valuation Services ](https://www.brinkersimpson.com/services/valuation) - [ Risk Advisory ](https://www.brinkersimpson.com/services/risk-advisory) - [ Peer Review Services ](https://www.brinkersimpson.com/services/peer-review) - [ About ](https://www.brinkersimpson.com/about) - [ People ](https://www.brinkersimpson.com/about/team) - [ Community ](https://www.brinkersimpson.com/about/community) - [ Industries ](https://www.brinkersimpson.com/industries) - Resources - [ Articles ](https://www.brinkersimpson.com/resources/articles) - [ Newsletter ](https://www.brinkersimpson.com/resources/newsletter) - [ Careers ](https://www.brinkersimpson.com/careers) [ Let's Connect ](https://www.brinkersimpson.com/contact) [ 610-544-5900 ](tel:+16105445900) [ contact@brinkersimpson.com ](mailto:contact@brinkersimpson.com) [Client Portal ](https://www.securefirmportal.com/Account/Login/4874) [Pay Now ](https://www.brinkersimpson.com/pay-online) March 25, 2024 # Tips For Investigating Employee Fraud Leads by: [Brinker Simpson & Company](https://www.brinkersimpson.com/blog/author/brinker-simpson-company) 3 Minute Read Occupational fraud is a crime generally committed by employees against their employers. Ironically, employees also are most likely to notice or suspect occupational fraud schemes conducted by their coworkers or managers. Whether they report through an anonymous tipline or directly to management or HR, rank-and-file workers often are the first to raise the alarm. If an employee alleges that someone has committed theft or fraud, or simply exhibits suspicious behavior, it’s your responsibility is to take the charges seriously and investigate them. Here’s how. Preliminary digging ## If you receive a If you receive a fraud tip, you’ll need to assess its validity by conducting preliminary interviews — even if you plan to eventually turn the investigation over to legal and fraud experts. To help avoid unnecessary legal complications, keep details of any allegation private, particularly the identities of the accused and the accuser. Assure workers involved that the investigation will be held in strict confidence and inform them that they can’t discuss any part of the process with anyone outside it. Remind managers that they need to have all conversations behind closed doors, store all meeting notes securely and speak only to those people who are necessary to the complaint investigation. One-on-one interviews ## When you sit down When you sit down with the accuser, the accused or potential witnesses, start with an opening statement that describes what’s being investigated and then ask open-ended questions that encourage employees to say more than “yes” or “no.” Ask all interviewees the same questions so that you can compare answers, identify patterns and uncover discrepancies. Also, have a witness present to verify what was said and what occurred during the interviews. Keep an open mind while gathering facts. Just because an employee has a reputation around the office as a “troublemaker” or “crank,” doesn’t mean that person is lying or guilty of an impropriety. If an interview seems to veer into dangerous territory — for example, an accused individual claims harassment or asks about legal rights — contact your attorney immediately. Also consider allowing a third-party investigator, such as a fraud expert, to handle future interviews. This can help preserve impartiality and show all parties that the investigation is being taken seriously. Tying up loose ends ## You’ll want to keep detailed notes You’ll want to keep detailed notes on all the steps of your investigation. Include the dates and times of workspace searches, computer forensic activity and conversations. After every interview or action taken, review your notes to ensure they capture all relevant information. Even if your investigation turns up no evidence of misconduct or criminal behavior, you’ll need to follow up and close the loop with those involved. When complaints are found to have merit, take appropriate action as quickly as possible. You may be able to handle some minor issues with in-house personnel. But consult legal and financial advisors — and possibly law enforcement — if a crime seems to have occurred or you detect financial losses. Document your policy Detail the resolution process in your employee handbook so that workers know what to expect if they make a complaint—of any kind. Just make sure your managers understand and adhere to anything you put in writing. *Contact us if you need help investigating fraud.* [Fraud and Forensic](https://www.brinkersimpson.com/blog/topic/fraud-and-forensic), [Guide](https://www.brinkersimpson.com/blog/topic/guide) ### Table of Contents Previous Article [ Business Valuation Focuses on Both Quantitative & Qualitative Factors ](https://www.brinkersimpson.com/blog/business-valuation-focuses-on-both-quantitative-and-qualitative-factors) ## Related Articles ![Before You Buy: Red Flags in an M&A Target’s Financials](https://www.brinkersimpson.com/hs-fs/hubfs/5-Jan-27-2026-05-27-47-0753-PM.png?width=500&height=500&name=5-Jan-27-2026-05-27-47-0753-PM.png) February 16, 2026 ### [ Before You Buy: Red Flags in an M&A Target’s Financials ](https://www.brinkersimpson.com/blog/before-you-buy-red-flags-in-an-ma-targets-financials) Do your company’s 2026 strategic plans include a business acquisition? Whether you already have your eye on a target or are still weighing options, plan now for extensive financial due diligence. To ... Fraud and Forensic • Business Advisory • Transactions and M&A • Tax Compliance • Accounting and Financial Operations ![Four Ways to Read and Strengthen Your Balance Sheet](https://www.brinkersimpson.com/hs-fs/hubfs/4-Jan-27-2026-05-27-47-5952-PM.png?width=500&height=500&name=4-Jan-27-2026-05-27-47-5952-PM.png) February 19, 2026 ### [ Four Ways to Read and Strengthen Your Balance Sheet ](https://www.brinkersimpson.com/blog/four-ways-to-read-and-strengthen-your-balance-sheet) The balance sheet shows your company’s financial condition — its assets vs. liabilities — at a specific point in time. However, the balance sheet is more than a static report. It can also serve as a ... Fraud and Forensic • Business Advisory • Valuation • Guide • Audit and Assurance ![Strategies to Prevent Abuse of Friends & Family Discount](https://www.brinkersimpson.com/hs-fs/hubfs/4-Oct-28-2025-06-24-59-8582-PM.png?width=500&height=500&name=4-Oct-28-2025-06-24-59-8582-PM.png) February 13, 2026 ### [ Strategies to Prevent Abuse of Friends & Family Discount ](https://www.brinkersimpson.com/blog/strategies-to-prevent-abuse-of-friends-family-discount) Many small businesses offer discounts to employees, friends, family, or loyal customers as a gesture of appreciation. While these programs can strengthen relationships and build goodwill, they can ... Fraud and Forensic • Business Advisory • Valuation **Strategic Advisory** [Business Advisory](https://www.brinkersimpson.com/services/strategic-advisory/business-advisory) [Succession Planning](https://www.brinkersimpson.com/services/strategic-advisory/succession-planning) [Financial Process and Controls](https://www.brinkersimpson.com/services/strategic-advisory/financial-process-controls) **Accounting Support** [CFO and Controller Services](https://www.brinkersimpson.com/services/accounting-support/cfo-controller-services) [Accounting and Bookkeeping](https://www.brinkersimpson.com/services/accounting-support/accounting-bookkeeping) [Financial Planning and Analysis](https://www.brinkersimpson.com/services/accounting-support/financial-planning-analysis) **Tax Services** [Business Tax Services](https://www.brinkersimpson.com/services/tax/business-tax) [Individual Tax Services](https://www.brinkersimpson.com/services/tax/individual-tax) [Tax Controversy and Defense](https://www.brinkersimpson.com/services/tax/tax-controversy-defense) **Audit and Assurance** [Financial Statement Audits](https://www.brinkersimpson.com/services/audit-assurance/financial-statement-audits) [Agreed Upon Procedures](https://www.brinkersimpson.com/services/audit-assurance/agreed-upon-procedures) **Transaction Advisory** [Due Diligence](https://www.brinkersimpson.com/services/transaction-advisory/due-diligence) [Post-Acquisition Services](https://www.brinkersimpson.com/services/transaction-advisory/post-acquisition) [Mergers and Acquisitions](https://www.brinkersimpson.com/services/transaction-advisory/mergers-acquisitions) [Transaction Consulting](https://www.brinkersimpson.com/services/transaction-advisory/transaction-consulting) **Valuation Services** [Business Valuations](https://www.brinkersimpson.com/services/valuation/business-valuations) [Quality of Earnings](https://www.brinkersimpson.com/services/valuation/quality-of-earnings) [Buy-Sell Agreements](https://www.brinkersimpson.com/services/valuation/buy-sell-agreements) [Forecasts and Projections](https://www.brinkersimpson.com/services/valuation/forecasts-projections) [Calculation of Value](https://www.brinkersimpson.com/services/valuation/calculation-of-value) **Risk Advisory** [Forensic Accounting](https://www.brinkersimpson.com/services/risk-advisory/forensic-accounting) [Fraud Investigation](https://www.brinkersimpson.com/services/risk-advisory/fraud-investigation) [Internal Investigation](https://www.brinkersimpson.com/services/risk-advisory/internal-investigation) [Shareholder Disputes](https://www.brinkersimpson.com/services/risk-advisory/shareholder-disputes) [Economic Damages](https://www.brinkersimpson.com/services/risk-advisory/economic-damages) [White Collar Criminal Tax Defense](https://www.brinkersimpson.com/services/risk-advisory/white-collar-tax-defense) **Peer Review Services** [System and Engagement Reviews](https://www.brinkersimpson.com/services/peer-review/system-engagement-reviews) [Outsourced Quality Control Review](https://www.brinkersimpson.com/services/peer-review/outsourced-quality-control) © Brinker Simpson. All rights reserved.| [Privacy Policy](https://www.brinkersimpson.com/privacy-policy)| [Terms of Service](https://www.brinkersimpson.com/terms-and-conditions) ```json { "@context" : "https://schema.org", "@id" : "", "@type" : "LocalBusiness", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Media", "addressRegion" : "PA", "postalCode" : "19063", "streetAddress" : "1400 N Providence Rd, Rosetree Building 2, Suite 2000E" }, "image" : "https://www.brinkersimpson.com/hubfs/BrinkerSimpson%20_June_2020_Folder/Images/brinkersimpson-logo-gray-white-59.webp", "name" : "Brinker Simpson", "priceRange" : "$$", "telephone" : "610.544.5900", "url" : "https://www.brinkersimpson.com/" } ```