Forensic and investigative accounting is a practice employed by investigators of financial crimes to analyze financial transactions and the flow of money. Specialized accountants use advanced techniques and strategies to trace money and determine whether its movement may indicate fraud. Forensic accounting litigation is often at the heart of criminal trials regarding embezzlement, securities fraud, and identity theft.
What Is Forensic Accounting?
Forensic accounting is a field that involves examining financial records to uncover fraud, theft, or other financial crimes. Working with law enforcement agencies, forensic accountants analyze bank statements, financial transactions, and other records – including electronic records and digital databases – to find evidence of criminal activity. A forensic accountant will use accounting and investigative techniques to detect irregularities, trace stolen funds, and provide reports that prosecutors can use in court.
Identity Theft and Financial Trails
Identity theft is the use of someone’s identifying information, often to get control of their financial accounts and extract funds. These financial transactions leave a trail that forensic investigators will attempt to follow to their source. When they suspect identity theft, forensic accounting professionals will look through bank and credit card statements, wire transfers, and other documentary evidence to find unauthorized transactions to unusual accounts. Then, they’ll attempt to determine the owners or managers of those accounts to discover who is behind any fraudulent transfers.
Gathering Evidence Through Forensic Techniques
Forensic accountants use various techniques to find and document evidence of identity theft and fraudulent financial activity. These include:
- Financial analysis – In this technique, investigators look at transaction habits over time, looking for inconsistencies and irregularities that suggest an account’s owner might not be behind certain ones.
- Data forensics – Identity theft is often a long-distance crime in which perpetrators access funds from a remote location, necessitating online transactions involving financial institutions. These transactions leave digital footprints that accountants can follow to their source.
Forensic Accounting in the Courtroom
In identity theft trials, prosecutors rely heavily on evidence from forensic accountants. These accountants provide detailed reports that attempt to show the flow of stolen money, unauthorized transactions, and financial irregularities. Forensic accountants might also testify in court, explaining their findings in simple terms to help the jury understand the financial evidence.
Defense attorneys counter this evidence by questioning the methods and conclusions of the forensic accountants. They might argue that the financial transactions were legitimate or that someone else could have committed the theft. Defense lawyers also look for errors or inconsistencies in the forensic accountant’s work to weaken the prosecution’s case. By challenging the evidence, they aim to create doubt in the jurors’ minds.
Contact Our Identity Theft Defense Attorneys for Help
Given the prominent role of fraud examination and forensic accounting in New Jersey identity theft cases, it’s crucial to work with a lawyer who can effectively challenge this evidence. Attorney Keith Oliver and his team have decades of criminal defense experience and deeply understand the state and federal finance laws. Call Keith Oliver Criminal Law today or reach out online for a free consultation with a criminal fraud lawyer.
