How to Report Financial Fraud

by Jamie M. Kisner ; Updated July 27, 2017
Gather proof to report financial fraud.

Items you will need

  • Evidence
  • Details about the person/company

The best way to report financial fraud is to do it as soon as you discover proof that something is wrong. You may not have all the details, but providing enough identifying information and evidence of the improper action(s) are sufficient for starting an investigation. Being a good record-keeper and a good writer will be useful in reporting financial fraud in investments, contract agreements, retail purchases and more. The task of reporting financial fraud requires local notification to begin the process.

Step 1

Collect all details regarding the financial fraud to present copies/evidence to local authorities to begin a record of the improper action(s). Dates, receipts, witness affidavits (preferably notarized) and more should be included. You must be able to prove without a doubt that fraud occurred for the report to have a better chance of being taken seriously.

Be able to explain the impact the fraud had on your life with proof (i.e., bills) as well. Maintain a record of each report made against the person or company.

Step 2

Report the situation to the nearest local authorities. In most cases, this will be the police station's fraud department or the local FBI fraud division. Obtain a case number for your situation and provide names with other identifying details. You may submit the information online to the FBI, but in-person only with local police departments. Refer to the Consumer Fraud Reporting Organization to save time in finding direct links to national resources to assist you in reporting and resolving fraud cases.

Step 3

Provide the same details to the state agency handling where you reside or where the fraud occurred. For instance, the attorney general's office or consumer services department are designed to assist consumers that become victims of financial fraud. Give them the police case number and a full description of the transaction events.

Step 4

Wait for a reply from the police/investigation division and the state to determine what your next move should be. Sometimes, the agency will take over the case and will attempt to rectify the situation for the consumer/victim. You will receive a reply within 30 days of submission to the state agency usually.

If you are unsuccessful, you may report the situation to the federal government at the Federal Trade Commission. For example, the FTC monitors bad advertising practices that mislead consumers. The Securities & Exchange Commission (SEC) is designed to monitor publicly traded companies when they are suspected of any wrongdoing regarding investments.

Tips

  • Make sure that you know the exact amount of money you are owed. Itemize it if possible to ensure that you will retrieve the money in the resolution process.

About the Author

Jamie M. Kisner currently works as a South Florida entrepreneur of JMK Notary & Services and a Miami-Dade College instructor. During her spare time, she writes online content for a variety of sites, including eHow, Digital Journal, Bukisa and Homeless Voice. She holds a master's degree in business administration from Florida's Nova Southeastern University.

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