Mr Strategy’s Memo on fraud risk
Have you ever been accused of a crime you never committed? Imagine waking up to a letter demanding that you refund $590,000 from transactions that happened over a decade ago, which you believed were legitimate. Now, you’re being labeled a fraudster. Welcome to the real world of forensic investigations, where stories are rarely black and white.
The case of the ‘missing’ money
Let’s call him Subject 1, a former hospitality business owner who walked into a bank in 2022, brandishing copies of old cheques and a mandate letter that allegedly required two signatures for withdrawals. His claim? Between 2006 and 2010, his former manager, Subject 2, single-handedly withdrew funds without his approval. His demand? A full refund from the bank, which, according to him, failed to uphold his company’s mandate.
The bank’s dilemma? Records older than 10 years had been purged, as the bank embraced automation. This was a secret known by few insiders which for some reason, Subject 1, got to know and intended to exploit. Another reason I advocate for information classification policies and giving access on a need-to-know basis. Back to the issue. There was no way to verify the transactions by the bank. However, Subject 1 had copies of single-signature cheques enough, in his view, to prove financial loss. He wanted the bank to refund for having honored cheques with one signature contrary to the approved mandate.
But something was off.
When asked what action he had taken against Subject 2 at the time, Subject 1 hesitated. Subject 2, he claimed, had disappeared. Curious, a bank manager did a quick online search. Subject 2 was not missing. He indicated on his social media status that was working at a hotel in Zanzibar. The bank turned to us for answers.
The investigation: Unraveling the deception
Using open-source intelligence and digital forensics, we traced Subject 2, booked at the hotel, and checked as guests. After two days of inquiries, met Subject 2 and requested a discussion, introducing ourselves as guests from Uganda. He was fond of Uganda and was kind enough to give us time. As the discussion progressed, we decided to open up and he was so kind to give us open up to us. His response? A mix of disbelief and amusement.
“Yes, I withdrew the money,” he admitted. “But with Subject 1’s knowledge. He was often out of the country and authorized me to sign alone. I provided weekly reports. He even pre-approved all the withdrawals.”
He wasn’t lying. He opened his cloud account and showed us all the proof.
Old email records, retrieved from Subject 1’s former employees, confirmed this. Management reports had been routinely sent and reviewed.
So why was Subject 1 pushing a fraud claim?
The answer was simple: He saw an opportunity. He knew the bank couldn’t retrieve the original records and hoped they would settle to avoid reputational risk. It was a calculated move a financial bluff.
Lessons for leaders
Fraud is not always what it seems
- Paper trails are gold – In business, never rely solely on memory. Proper record-keeping can be the difference between truth and costly deception. If you have where to keep the records, keep them even for 50 years or 100 years. You lose nothing unless you are involved in some financial shenanigans you wish to hide.
- Fraud claims need scrutiny – Just because someone screams “fraud” doesn’t mean they’re the victim.
- Social media intelligence is powerful – In today’s digital age, people leave footprints everywhere. Fraud investigators must adapt.
The case was closed. No fraud had occurred just an opportunist banking on missing records.
Next time you hear a fraud claim, ask yourself: Is this real, or is someone playing the system? At Summit Consulting Ltd, we have a team of experts and are members of the global detectives
Your move, strategist.
Until next time,
