Fraud is often a complex affair. It can effectively be detected through internal control measures; however it does require specialist knowledge in fields of investigation. In most cases, fraud often comes to the surface by accidental discovery, anonymous letters or as a result of an unexpected business crisis. Through our extensive capability and wide-ranging experience in tackling these problems, AXIS can help you mitigate the costs of fraud.

As fraud is unavoidable in many circumstances, early detection is crucial to the continued sustainability of your business. In most cases fraud is deliberately concealed, therefore the handling of fraud requires more than just technical know-how; it also requires speed, sensitivity and discretion. Fraud may involve your customers, suppliers, distributors, employees or even your management. Only a hand full of clients as we know it, are equipped to conduct investigative fraud measures when they themselves become victims.

In line with our prevention policy, we also provide fraud prevention services, where we will dissect the areas commonly targeted and set up necessary deterrent measures. Our role is to unravel any loopholes in your company before it is exploited upon, and to eliminate future possibilities. We also appreciate the need to safeguard your company’s assets and reputation, curb illegal activities and come up with prompt solutions, with the least possible disruption to your organisation.

If, by misfortune, your organisation has fallen prey to fraud, the survival of your business may depend on the successful recovery of  lost assets. We pride ourselves at being able to provide the best multi-disciplinary team of investigators, computer forensics specialists and forensic accountants, to recover assets that might prove crucial to the continuity of operations in your organisation.

The objective of fraud awareness training is to give staffs the necessary skills, tools and support, to minimise fraud within their business environment. Our experience has also shown that the incidence of fraud can dramatically decrease when staffs are trained in fraud awareness. A typical presentation incorporates the use of case studies and examines the types of fraud that may be encountered.

Our skills include prior law enforcement experience, insolvency and liquidation, internal audit, forensic accounting and fraud-related services. We are well-equipped with the knowledge and resources to conduct local and regional investigations and fraud related asset-tracing enquiries.

The AXIS Edge
With our worldwide affiliations and resources of the latest technology and investigative methods, we are unquestionably confident of tackling any assignment hands-on. Among the types of fraud investigations that we handle are:-   

• Misappropriations of company funds          
• False expense reporting
• Phantom vendors     
• Manufacturing fraud
• Purchase fraud         
• Payroll fraud
• Secret commissions and bonuses     
• Fraudulent insurance claims
• Distributor & Vendor fraud • Internet Fraud

 

The Incident
A development company which was a subsidiary of a KLSE listed corporation, was having constant cost overruns in a housing project located on the outskirts of Sungai Buloh, Selangor. This project, though not very large in size, was plagued by financial issues from the commencement.

The size of the project played no small part in the overruns, as normally stringent standard procedures were not properly implemented. This anomaly did not go unnoticed, but due to close relations between all the parties involved in the construction process such as sub-contractors, staffs of the clients’ and architects’ firm amongst others, external checks by an investigation firm did not yield any conclusive proof. The only indication of fraudulent proceedings was the astronomical costs. The scheme was so well-executed that the investigation team appointed could not accurately pinpoint the individual(s) involved.

Our Professional Solution
AXIS was engaged as an independent auditor after the project was completed. Our first action was to round up a team of experts to uncover the facts. This was an unorthodox mix of an experienced site engineer, a quantity surveyor, a chartered accountant,  a lawyer, a computer forensics engineer and several private investigators, one of whom is very well-versed in the inner workings of the industry.

The elaborate scam was the work of a meticulous genius, who had access to all the right levels of the company. A lot of thought and planning had obviously gone into the plan.  Soon, it was evident to the team that important documents that could potentially implicate anyone had either been reported as stolen or missing. The proper missing reports had been filed for the documents and the chances of actually implicating any party in this case looked slim. Our private investigators however deduced that the route to uncovering this scheme lay elsewhere. An investigator noticed a senior site engineer who had a disgruntled manner only apparent to him. After much persuasion the engineer agreed to provide irrefutable proof of the whole scheme for a “price”.

The Final Outcome
The perseverance of our investigators paid off and we uncovered one of the most carefully executed fraud cases in recent history. It turned out staffs of all levels, including an immediate family member of the company’s founder was involved, explaining in part why the scheme was so airtight. The case was settled internally to avoid bad press but the overall costs overrun issues were resolved with finality.