The Digital Trail: How AI, Crypto, and New Forensic Tools Transformed Fraud Investigation in 2023
Download MP3Episode Description
Our investigative agency provides a quarterly update on the most common fraud types and investigation trends we're seeing in the marketplace. From cryptocurrency scams to hidden assets in family disputes, learn about the evolving landscape of fraud and how to protect yourself.
Key Topics Covered:
Cryptocurrency and Investment Fraud Trends
- Fake cryptocurrency investments peaked in 2021-2022, featuring Bitcoin and digital currency scams
- Victims were promised returns but couldn't withdraw funds due to fees or disappearing scammers
- These scams decreased in early 2023 but are now resurging with new variations
- Ponzi schemes and fake investment platforms continue to target unsuspecting victims
- Verification of investment companies and individuals is crucial before sending money
Hidden Assets - The Fastest Growing Investigation Type
- Asset concealment is present in almost every litigation case our agency handles
- Common in divorce cases, probate disputes, lawsuits, judgments, and employment claims
- Parties often hide assets before judgments to avoid seizure of bank accounts, real estate, and vehicles
- Methods include transferring assets to other names, opening hidden accounts, and creating complex ownership structures
Divorce and Family Law Asset Concealment
- Modern families have significantly larger asset portfolios (often $1M+) including 401k, home equity, and multiple accounts
- Hiding $100,000 can result in $50,000 personal gain due to community property splits
- Financial disclosures are often incomplete or falsified
- Many attorneys advise clients that disclosure violations result in minimal consequences
- Every divorce case investigated reveals some form of asset concealment
Probate Fraud in Estate Cases
- Family members steal from deceased relatives' estates to gain more than their fair share
- Common methods include removing money from accounts, hiding vehicles, and transferring real estate through quick claim deeds
- More problematic than divorce fraud because perpetrators maintain family relationships while stealing
- Executors and sometimes attorneys may be complicit in the fraud
- Extensive document review is required to uncover hidden assets
Corporate Crime and Business Fraud
- Employee, vendor, and cyber crime are the primary threats to businesses
- Social engineering attacks convince business owners to transfer money to fraudulent accounts
- Scammers research vendor relationships and impersonate known contacts
- Even intelligent professionals (attorneys, accountants, CEOs) fall victim to sophisticated schemes
- Embezzlement can be perpetrated by employees or external fraudsters
Investigation Methods and Prevention
- Asset searches require reviewing hundreds or thousands of documents
- Electronic records, paper documents, and government filings must all be examined
- Hidden assets are found in nearly every case where suspicion exists
- Cyber crime insurance and strong verification procedures are essential
- Never send money without verifying the recipient's true identity and physical address
- Social engineering awareness training is crucial for all business personnel
Resources Mentioned:
- Active Intel website for scam identification resources
- Risk Coverage insurance services
- Cyber crime and social engineering insurance policies
Key Takeaway:
Trust your instincts about hidden assets - if you suspect concealment, investigation almost always reveals fraudulent activity. Prevention through verification and awareness is the best defense against these evolving fraud schemes.
Trust your instincts about hidden assets - if you suspect concealment, investigation almost always reveals fraudulent activity. Prevention through verification and awareness is the best defense against these evolving fraud schemes.
