What Corporate Fraud And Internal Theft Look Like In Practice

Fraud and theft inside a company often hide inside normal activity. Common patterns include:

  • Inventory that shrinks without clear damage or shipping records
  • Vendors that seem tied to one employee or department
  • Expense reports that never look quite right
  • Cash handling irregularities at point of sale or service counters
  • Unusual credits, refunds, or adjustments in accounting systems

These problems can involve one employee or a small group. They may be tied to embezzlement, kickbacks, fake vendors, or simple opportunistic theft. Our role is to separate rumor from reality and show you what the evidence supports.

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When Companies Call For Fraud And Theft Investigations

Most clients contact Freedom Defense Services when they see one or more warning signs:

  • Repeated inventory shortages with no clear cause
  • Anonymous tips about a specific employee or department
  • Suspicious vendor relationships or pricing
  • Cash drawers or safes that never match the books
  • Unusual access to financial systems or sensitive records
  • Concerns that an internal case may grow into a public incident

At that point, managers want answers but also worry about wrongful termination claims, employee relations, and brand damage. A structured investigation gives you a clear picture while protecting the integrity of the process.

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Our Corporate Fraud & Theft Investigation Process

Intake And Case Planning

Every investigation starts with a private intake meeting. We review your concerns, known facts, written policies, and any early documentation you already have. When you involve legal counsel, we coordinate with them from the start so the work supports any civil or criminal action they may consider.

This planning often connects with existing risk work described on:

Together, we define:

  • What you believe is happening
  • Who may be involved or affected
  • What systems or locations are in scope
  • How sensitive the situation is internally

Records And Data Review

We then turn to the paper and electronic trail. Depending on the case, this may include:

  • Invoices, purchase orders, and receiving documents
  • Inventory records and cycle counts
  • Point of sale and cash handling records
  • Timekeeping and access control logs
  • Email, messaging, and other internal communication (subject to your policies and legal guidance)

These records help set a timeline and show where money, goods, or information started to move in ways that do not match normal operations.

Interviews And Fact Finding

Once we have a picture of the records, we begin interviews. This stage may include:

  • Witnesses who saw activity or handled related paperwork
  • Supervisors and managers who oversee the area
  • Employees who control access, ordering, or approval steps

Interviews are conducted in a structured way so that each statement can be compared to documents and other testimony. When necessary, we can support HR interviews by providing questions and sitting in as observers.

Surveillance And Technical Measures

Some cases require observation in the field. For those matters, we may recommend:

  • Static or mobile surveillance around key locations
  • Covert observation of loading docks, stock rooms, or cash areas
  • Technical electronic countermeasures when you suspect hidden recording devices or eavesdropping

These services draw on capabilities already listed under:

All surveillance activity follows California law and your internal policies so that any evidence gathered stands up to review.

Evidence Handling And Reporting

From the start, we treat all information as possible evidence. We maintain clear records of what was collected, when, from where, and by whom. At the end of the case you receive:

  • A written report in plain language
  • Supporting documents such as photographs, diagrams, and record extracts
  • A timeline that shows how the scheme operated
  • Clear identification of involved parties where the evidence supports it

Where needed, our investigators can testify at internal hearings, depositions, or court, supported by the “Expert Witnesses” capabilities you list under Consulting and Investigative Services.

Types Of Corporate Fraud And Theft Cases We Handle

Employee Theft And Inventory Shrinkage

Many companies first notice problems in their inventory counts. Shrink can come from employees bypassing scanners, walking stock out side doors, or working with outsiders at docks and gates.

We investigate:

  • High loss product lines and SKUs
  • Patterns tied to certain shifts or departments
  • Possible cooperation between employees and outside drivers or vendors

Findings often lead to changes in staffing and coverage under:

Embezzlement, Skimming, And Cash Handling Issues

Cash and close equivalents can vanish in small amounts across long periods of time. Investigations in this area may look at:

  • Deposits that do not match daily totals
  • Refunds and voids without clear support
  • Petty cash funds that never seem to balance
  • Manual adjustments made by the same user over and over

These cases often require a careful blend of records review, system access analysis, and targeted interviews.

Vendor, Contractor, And Kickback Schemes

Fraud can also flow through third parties. Warning signs here include:

  • Vendors approved and used by a single employee
  • Repeated invoices just under approval thresholds
  • Work billed but not clearly performed
  • Pricing that does not match contracts or market conditions

Our investigators study vendor records, receiving history, and communication between company staff and third parties. Findings may support contract changes, civil claims, or criminal referrals, all in coordination with your attorneys.

Misuse Of Company Assets And Information

Not all theft involves cash or inventory. Some of the most damaging cases involve:

  • Theft of customer lists or trade secrets
  • Misuse of fuel cards, company vehicles, or tools
  • Side jobs carried out with company equipment during work hours

These matters connect closely with security planning, access control, and technology use, which tie back into:

Working With HR, Legal Counsel, And Law Enforcement

Corporate fraud and theft cases touch people’s jobs and reputations. Poorly handled investigations can expose the company to claims of retaliation or discrimination. Freedom Defense Services works in a way that respects both the need for answers and the need for fair treatment.

We coordinate with:

  • Human Resources on policy, communication, and documentation
  • Internal or outside legal counsel on privilege and next steps
  • Law enforcement when you choose to pursue criminal charges

Some clients choose internal discipline and civil recovery only. Others want a full criminal complaint. Our reports, documentation, and witness work support whichever path your leadership and attorneys select.

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From Investigation To Prevention

Once a fraud or theft case is resolved, most companies want to close the gaps that allowed it to grow. Every investigation teaches something about internal controls, staffing, and security coverage.

Follow up steps often include:

This turns a painful incident into a point where your security and risk posture actually becomes stronger.

Why Companies Choose Freedom Defense Services For Fraud & Theft Cases

Freedom Defense Services is not a generalist firm that only touches security. Security and investigation work are the core of the company. For corporate clients, that means:

  • Investigators with law enforcement, federal, and corporate security backgrounds
  • Familiarity with Southern California crime patterns and business practices
  • Clear, plain language reporting suitable for executives and attorneys
  • Respect for confidentiality and brand protection during sensitive matters
  • The ability to connect investigation results to staffing and guard services when you are ready to act

You gain a partner that can both uncover what went wrong and help you build stronger safeguards for the future.

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Request Corporate Fraud & Theft Investigation Support

If you suspect fraud or internal theft in your organization, early action often reduces loss and protects your position if the situation grows. A quiet conversation with an experienced investigator is the first step.

You can:

From there, we can outline a focused corporate fraud and theft investigation that fits your company, your risk level, and your legal strategy across Southern California.