How forensic investigators make their money tracking fraud and financial crime

Stephen Grootes speaks to Chad Thomas, Director at IRS Forensic Investigators, about the business of forensic investigations and how firms in this niche sector actually make money. 

Listen to the interview in the audio player below.

When a company suspects fraud, when an insurer believes a claim may be dishonest, or when money appears to have vanished from a business account, a specialist type of investigator is often called in.

These professionals are known as forensic investigators. And while the public usually hears about them during major corruption scandals, much of their work happens quietly behind the scenes.

At its core, forensic investigation is about finding the truth behind financial wrongdoing.

That could include:

• Fraud inside a company
• Money laundering
• Investment scams or Ponzi schemes
• Corruption and tender fraud
• Insurance fraud
• Cybercrime and digital theft

Investigators examine financial records, analyse digital data, interview witnesses and trace where money has moved.

Although the industry is often linked to big public scandals, the majority of work comes from organisations that need help dealing with suspected fraud or internal misconduct.

Speaking to Stephen Grootes on The Money Show, Chad Thomas, Director at IRS Forensic Investigators says in many cases, businesses bring investigators in quietly to protect themselves from financial losses and legal risk.

"IRS forensic investigators was founded in 2001, and the reason was because we saw a gap in the market for investigations into financial crimes, specifically complexed financial crimes."

- Chad Thomas, Director - IRS Forensic Investigators

"It was decided in 2001 when we established IRS, that that was our target market. We would look after the small companies, We'd look after the individuals. We'd look after the families."

- Chad Thomas, Director - IRS Forensic Investigators

"Investigations weren't as complexed as they've become. We live in a cyber and digital age and investigations have changed over the years. It's not the days of cheque fraud. It's not the days of financial statement fraud, embezzlement. Things have changed dramatically over the landscape over the last 25 years."

- Chad Thomas, Director - IRS Forensic Investigators

Scroll to the top of the article to listen to the full interview.