Steps to Proving or Disproving an Allegation of Fraud
After it has been determined that an investigation is warranted, the investigator will need to take steps to prove or disprove the allegation. Besides interviews and using public records, investigating the case may involve the following:

• Covert operations.
• Surveillance.
• Informants.
• Dumpster diving.
• Sources of information.

The courts have deemed undercover operations are an acceptable method of acquiring information, provided there is sufficient probable cause that a crime has been committed. In private companies, entrapment is generally not an issue, but consultation with legal counsel is strongly advised prior to conducting an undercover operation. A written plan detailing specific objectives, time frames, and approvals should be developed prior to undertaking an undercover operation.

Surveillance
Surveillance is the secretive and continuous observance of a suspect's activities and is frequently used in developing evidence. It may be used to obtain probable cause for search warrants, develop investigative leads, identify co-conspirators, gather intelligence, and locate persons or objects (e.g., stolen goods).

Informants
Informants are persons who have specific knowledge of a criminal activity. Informants can be extremely useful in fraud investigations regardless of their personal motivation for supplying information (e.g., revenge or guilty conscience).

Dumpster Diving
On occasion, the investigator will find it necessary to sift a suspect's trash to obtain evidence and leads. Important documents and information concerning illegal activity may be found in garbage. The courts have upheld that investigators may sift through trash without a search warrant, provided that the trash has left a suspect's possession. After it has left the suspect's possession, there is no longer the reasonable expectation of privacy, and thus it is fair game.

• Locate individuals or verify their identity.
• Research assets or financial positions.
• Document lifestyles and background information.

• Personnel files.
• Performance notes and company records.
• Prior audit and investigative files.
• Financial disclosure statements.

The Right to Access Information
The government is bound by law to facilitate the public's access to its information, and to encourage a diversity of sources to acquire and use the information. Three tenets supporting the public's right to access government records are:

• The public has a broad right of access to government information.
• The government may not discriminate in the dissemination of public information.
• Restrictions on the use of public information are contrary to government policy in general.

• Freedom of Information Act.
• Privacy Act.

• Personal information that clearly invades personal privacy.
• Commercial trade information belonging to a private entity held by the government because of a contract for regulatory purposes).
• Information withheld for security reasons, such as investigative files.

Under the Privacy Act, a requested record must pertain to the requester or the requester must be the legal guardian of the individual of record. This Act protects the individual by ensuring that important records be used only for their intended purpose. Each government agency is required to publish a descriptive list of the systems from which information can be retrieved using personal identifiers.

In general, the courts have held that the laws, regulations, and policies governing public access to government information apply equally to all information, regardless of the media in which it exists. This ruling means, for example, that if information exists exclusively on an electronic media, the public may have access to it and is not required to request a "hard copy" of the material.

Public records are those that a governmental unit is required by law to maintain or that are necessary to discharge the duties imposed by law. Many types of public records contain redundant information about individuals or entities, yet each may contain unique information. The investigator should be prepared to consult a variety of public records to gather the necessary information.

Good sources to consult in determining where to look for public records and to determine what is available are:

• Public records providers.
• State and county records.
• Asset/lien search.
• Public record search companies.
• On-line services.

• Manual search.
• Service companies.
• On-line computer services.
• Combination of methods.

Investigators must rely heavily on clerks who maintain the records at the various agencies or units serving as depositories of information. These clerks are knowledgeable and can locate records much more efficiently than the typical investigator. Most records are indexed with access to the indices on either microfiche or on-line computer terminal.

Service Companies
Service companies will conduct the search at costs that vary by provider. Most service companies can retrieve public record documents from virtually any county in the United States when provided with sufficient search criteria.

The investigator is likely to be able to access public records through commercial on-line services. There are several companies that provide varying levels of public record information to subscribers. These companies collect, store, and provide access to records directly on their service. Some materials are available through their service under a gateway delivery or is retrieved in hard copy and mailed or faxed to the subscriber.

Service companies, information brokers, and professional on-line investigators may very likely be the best choice for occasional record searches, depending on the cost and coverage. These groups will conduct research using on-line services and manual document retrieval from local sources.

On-line Computer Services
On-line computer services can yield significant information in a quick and efficient manner. Most on-line services are readily accessible from a personal computer. By conducting research through on-line databases, the investigator can easily find the information needed or uncover information that will locate the proper jurisdictions and locales to conduct an in-depth review of the relevant records.

Due to the transient nature of people, assets or fraudulent activity can be situated virtually anywhere. On-line services can provide volumes of information on jurisdictions available. These services are one of the more efficient and effective methods of conducting a broad-based public record search.

Using a Computer to Access Information
Informational databases are numerous and varied and can be readily accessed from a computer. A wealth of information is now available on the Internet, which is basically a giant network linking thousands databases throughout the world.

Newspapers, Journals, Periodicals, and Professional Papers
Newspapers, periodicals, and journals are an excellent source of information. Searchable databases containing information from literally hundreds of sources can usually be accessed for free at most libraries. Librarians can assist the investigator in identifying the appropriate database and search tools.