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Is your business the victim of a crime? Why you might want to wait to call the cops

Compliance and legal departments are understandably cautious when dealing with law enforcement, who are often eager to build a case against a company and its executives. This is especially true today, as the Department of Justice continues to signal its willingness to prioritize these investigations. So when a company finds itself the victim of a crime, its legal team may feel uncomfortable picking up the phone and calling a local US Attorney’s office. There are often good reasons to be cautious.

Much has been written about cyberattacks and government pressure on companies to report them. But more often than not, companies and their employees fall victim to more conventional crimes, such as embezzlement, money laundering, computer misuse, illegal recording or, most common of all, fraud. The company may have been tricked into making an investment that turns out to be part of a Ponzi scheme. Or he was tricked into making a fraudulent financial transaction. Individual victims are defrauded every day, and companies are not that different. The financial stakes and the collateral consequences for the entities could however vary significantly.