Fraud Detection
& Awareness
With over 35 years of investigative experience, our team of former FBI Special Agents helps you detect, prevent, and respond to financial fraud at every level.
Identifying Financial Irregularities
Our investigative process combines forensic accounting expertise with decades of federal law enforcement experience.
What is Fraud Detection?
Fraud detection is the systematic process of identifying financial irregularities, deceptive transactions, and hidden schemes within an organization's records. It combines forensic accounting techniques with investigative methodology to uncover misconduct that traditional audits often miss.
At MPM Consulting, we go beyond surface-level analysis. Our investigators trace every dollar, reconstruct financial timelines, and identify the behavioral patterns that indicate fraud — whether it's a single employee skimming funds or an organized scheme spanning multiple entities.
Warning Signs & Red Flags
Common warning signs include unexplained variances in financial reports, vendors with no verifiable business address, duplicate payments to the same entity, and employees who resist oversight of their transactions.
Other red flags: sudden lifestyle changes among employees with financial access, missing or altered source documents, unusual journal entries near reporting periods, and transactions just below approval thresholds.
MPM's Approach
Our methodology draws on decades of FBI and IRS-CID experience. We review financial records, identify anomalies through data analysis, and apply forensic techniques that reveal patterns invisible to standard audits.
We interview key personnel using FBI-developed questioning techniques, examine digital records, and reconstruct transaction histories. Findings are documented to evidentiary standards for both civil and criminal proceedings.
Types of Fraud
A comprehensive guide to 25+ types of fraud — understand what to look for and how to protect yourself and your organization.
- Financial & Corporate Fraud - fraud category illustration
Financial & Corporate Fraud
5 fraud typesEmbezzlement
The misappropriation of funds entrusted to an employee or fiduciary. Often involves manipulating accounting records or creating fictitious vendors to divert company money for personal use.
Unaccounted Funds
Money that cannot be traced or reconciled within an organization’s financial records. This may indicate theft, poor record-keeping used to conceal fraud, or unauthorized transactions.
Unexplained Wealth
When an individual’s assets or lifestyle significantly exceeds their known legitimate income. This is a key red flag investigated in fraud, corruption, and money laundering cases.
Unexplained High-Dollar Asset Purchases
Purchases of real estate, vehicles, or luxury goods that cannot be justified by an individual’s documented income. Often a sign of embezzlement, bribery, or proceeds from fraudulent activity.
Suspicious Movement of Funds
Unusual wire transfers, cash deposits just below reporting thresholds, or transfers between unrelated accounts. These patterns are often associated with money laundering or fraud concealment.
- Cyber & Digital Fraud - fraud category illustration
Cyber & Digital Fraud
4 fraud typesBusiness Email Compromise
Scammers impersonate executives or vendors via email to trick employees into wiring funds or sharing sensitive data. BEC attacks caused over $2.7 billion in losses in recent years according to the FBI.
Ransomware
Malicious software that encrypts an organization’s files and demands payment for the decryption key. Attacks can paralyze operations and often target businesses, hospitals, and government agencies.
Cryptocurrency Fraud
Schemes exploiting the anonymity of digital currencies, including fake exchanges, Ponzi schemes disguised as crypto investments, and “pump and dump” token manipulation.
Computer Virus Support Scams
Fraudsters display fake virus warnings on your screen, then pose as tech support to gain remote access to your computer. They steal personal information or charge for unnecessary “repairs.”
- Identity & Impersonation - fraud category illustration
Identity & Impersonation
4 fraud typesIdentity Theft
The unauthorized use of someone’s personal information — Social Security number, credit cards, or bank accounts — to commit fraud. Victims often don’t discover the theft until significant damage has occurred.
Imposter Business Scams
Criminals pose as representatives of well-known companies to extract payments or personal information. They may use fake invoices, spoofed emails, or cloned websites to appear legitimate.
Imposter Grandparent Scams
Scammers call elderly victims pretending to be a grandchild in distress, urgently requesting money for bail, medical bills, or travel. They rely on emotional pressure and secrecy to succeed.
Imposter Government Scams
Fraudsters impersonate IRS agents, Social Security officials, or law enforcement, threatening arrest or penalties unless immediate payment is made. Government agencies never demand payment by phone or gift card.
- Consumer & Investment Fraud - fraud category illustration
Consumer & Investment Fraud
5 fraud typesInvestment Scams
Fraudulent investment opportunities that promise high returns with little or no risk. Includes Ponzi schemes, pyramid schemes, and unregistered securities. Always verify investments through the SEC or FINRA.
Free Trial Offer Scams
Companies lure consumers with “free” product trials that automatically convert into recurring charges. Cancellation is made deliberately difficult, and unauthorized charges continue for months.
Prizes & Sweepstakes Scams
Victims are told they’ve won a prize but must pay fees, taxes, or shipping charges to claim it. Legitimate sweepstakes never require payment to collect winnings.
Timeshare Scams
Schemes targeting timeshare owners with fake resale offers, demanding upfront fees for a sale that never materializes. Scammers may also impersonate timeshare exit companies.
Romance Scams
Fraudsters create fake profiles on dating sites to build emotional relationships, then fabricate emergencies to request money. Victims lose an average of $10,000 or more before recognizing the deception.
- Vulnerable Population Targeting - fraud category illustration
Vulnerable Population Targeting
4 fraud typesElder Abuse & Exploitation
Financial exploitation of older adults by caregivers, family members, or strangers. Includes coerced changes to wills, unauthorized use of bank accounts, and predatory financial products targeting seniors.
Charitable Donation Scams
Fake charities that exploit goodwill, especially after natural disasters or during holiday seasons. Scammers create convincing websites and solicit donations that never reach those in need.
Grant Scams
Victims are told they qualify for a “free government grant” but must first pay processing fees. No legitimate government grant requires an upfront payment from the recipient.
Inheritance Scams
Fraudsters claim the victim is entitled to a large inheritance from a distant or unknown relative, requesting fees for legal processing, taxes, or transfer costs before any funds are released.
- Employment & Benefits Fraud - fraud category illustration
Employment & Benefits Fraud
3 fraud typesEmployment Scams
Fake job postings designed to steal personal information or extract payment for “training materials” or “background checks.” Legitimate employers never require candidates to pay to get hired.
Unemployment Scams
Filing fraudulent unemployment claims using stolen identities. This surged during the pandemic, costing billions in losses. Victims often discover the fraud when they receive unexpected tax forms or benefit notices.
Home Improvement & Repair Scams
Unlicensed contractors demand large upfront payments then perform substandard work or disappear entirely. They often target homeowners after storms or natural disasters when urgency is highest.
Suspect Fraud?
If you suspect fraud affecting you or your organization, our team of former FBI Special Agents is ready to help. Contact us for a confidential consultation.