Internal Investigations: The Basics

Internal investigations must uncover the truth about misconduct or fraud without damaging innocent employees. Here are the basics of how to plan and conduct a successful internal investigation.

By Derek Slater

Is it reasonable to include hidden cameras in my surveillance effort?

If you have a clear written policy and have communicated it to employees on a consistent periodic basis, and if the cameras are kept in clearly public spaces, you may be able to use a hidden camera as part of an investigation.

Otherwise, hidden cameras create some legal risks. There may be many more instances of prudent and appropriate application, but cases of inappropriate use do grab headlines.

As with all legal questions, involvement of counsel is strongly advised in any circumstances.

What investigation tactics and common mistakes clearly should be avoided?

Intimidation. Any attempt to coerce information out of an interviewee is likely to backfire.

"Pretexting", or posing as someone you aren't, is more complicated. It isn't strictly illegal but can create difficult challenges. This was strongly illustrated by the corporate investigation case at HP in 2006 involving board-level information leaks. This type of technique should only be used in lockstep with counsel.

Heresay obviously has no place in legal proceedings. Accusations must be documented, investigated with the appropriate rigor, and either confirmed through evidence or dismissed. Actions taken (such as an employee termination) without a strong case create not only legal liability but also morale problems, the impression of favoritism, and other issues.

Failure to control information. It bears repeating: Employees' reputations and relationship to the organization are on the line in an investigation. Careless disclosure of information causes rumors, damages productivity, and creates liability for the company and the investigator. ##

This introduction to internal investigations was compiled from articles on CSOonline.com. Contributors include Malcolm Wheatley, Brandon Gregg, Daintry Duffy, Sarah Scalet, and John Thompson.

Additional insights and resources on internal investigations and insider threats:

• Anatomy of a Fraud
• Private Investigations in the Information Age
• Bill Boni and Ira Winkler on Insider Threats and the Death by 1,000 Cuts
• Intellectual Property Theft: How to Stay Out of the Penalty Box
  A case study
• The Investigator's Toolkit
  A series of practical, tool-oriented columns by Corporate Investigations Manager Brandon Gregg

Read more about investigations/forensics in CSOonline's Investigations/Forensics section.

Other stories by Derek Slater

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