eDiscovery refers to the role of teams that specialise in providing support to various internal corporate functions, particularly legal, risk and compliance, to manage evidentiary obligations defensibly and cost-effectively by implementing technology-driven methodologies, including machine learning and other applications of artificial intelligence (AI).
We recently commemorated International Fraud Awareness Week, a time to highlight the prevalence of internal fraud and the importance of effective fraud detection and prevention strategies. Today, 7 December 2023, we celebrate eDiscovery Day, which serves as a reminder of the crucial role eDiscovery plays in uncovering the truth and protecting organisations from internal fraud.
Internal fraud can be devastating for businesses, causing significant financial losses, reputational damage, and erosion of employee trust. eDiscovery provides a powerful tool for investigating potential fraud by enabling organisations to collect, preserve, and analyse electronic data from a variety of sources, including emails, documents, and chat logs.
How eDiscovery Can Help Fight Internal Fraud
It is important to note that fraud takes place when employees under pressure identify the opportunity to commit fraud - coupled with a perceived low risk of detection and prosecution.
A crucial element to uncovering an internal fraud scheme is to understand the facts. For a successful disciplinary or Court (civil or criminal) hearing, the evidence supporting those facts must be reliable.
eDiscovery (or e-Discovery) is dedicated to discovering electronic information.
The Electronic Discovery Reference Model (EDRM) sets out a global framework for handling electronic information. eDiscovery technology and expertise form an integral part of that framework:
- Identification – to find evidence of
internal fraud means you are looking in the right places.
- eDiscovery experts work with internal stakeholders to understand how the suspects communicate and where those communications are stored.
- Chat messages and audio meeting transcripts are becoming more prevalent evidence sources than the traditional "smoking gun" email.
- Preservation and Collections
– to have access to evidence means it has been secured
appropriately.
- eDiscovery assists in preserving data so that it cannot be altered or destroyed and gathering potentially relevant evidence together in a forensically sound manner.
- If a suspect gets wind of the investigation, they will try to delete anything incriminating.
- Analysis – to evaluate the evidence
means it is in a readily available format for analysis.
- eDiscovery's processing and analytical tools help to uncover key patterns, topics, people, and discussions, early on.
- It's so intuitive that anyone can analyse these results to uncover fraud patterns, whether it is the internal investigation and legal teams or external support.
- Review - to examine the evidence means it is
in a readily available format for review.
- eDiscovery review platforms provide structured and AI-based methodologies to sift through large volumes of data.
- A structured review organises evidence into a cohesive fact-based narrative for the most persuasive and accurate story-telling.
- Presentation - to rely on evidence means it
has been managed properly from the outset.
- Following the EDRM framework ensures the evidence is found using a defensible process and maintaining the integrity of the evidence.
eDiscovery Day: A Call to Action
eDiscovery Day is an opportunity to reaffirm the importance of eDiscovery in the fight against internal fraud. Organisations should take this day to assess their evidence management capabilities and ensure they are equipped to effectively investigate potential fraud. By harnessing the power of eDiscovery, organisations can protect their valuable assets and safeguard their integrity.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
