Interview Techniques for Fraud Investigations: How to Spot Deception

Detecting fraud is not just about analysing financial records—it’s also about reading people. When conducting a fraud investigation, interviews are one of the most critical tools in uncovering the truth. But fraudsters rarely admit wrongdoing outright. Instead, they may deflect, lie, or manipulate the situation to cover their tracks.

So, how can investigators spot deception and extract the truth? Mastering effective interview techniques is key. Here’s how to conduct fraud-related interviews and identify when someone is being dishonest.

Step 1: Prepare Thoroughly Before the Interview

A well-prepared interviewer has a better chance of catching inconsistencies and uncovering the truth. Before the interview:

• Review financial records, emails, and any other relevant evidence.
• Understand the subject’s role, behaviour patterns, and potential motives.
• Prepare a list of open-ended and specific questions to guide the discussion.
• Choose a neutral, private setting where the interviewee feels comfortable but not overly relaxed.

Step 2: Build Rapport to Encourage Openness

People are more likely to disclose information when they feel at ease. Building rapport helps lower defences and makes it easier to detect shifts in behaviour. Try:

• Starting with casual conversation to ease tension.
• Showing empathy and professionalism rather than aggression.
• Maintaining neutral body language and a calm tone.

Creating a comfortable environment increases the likelihood of an honest exchange.

Step 3: Use the Right Questioning Techniques

TYour questioning approach can make or break an interview. Effective techniques include:

• Start with broad questions: “Can you walk me through your typical day-to-day tasks?”
• Progress to more specific inquiries: “Can you explain why this transaction was altered?”
• Ask for details in different ways to check for consistency.
• Use silence strategically—fraudsters often rush to fill gaps when there’s a pause.
• Challenge inconsistencies gently: “Earlier, you mentioned X, but now you’re saying Y. Can you clarify?”

Step 4: Observe Nonverbal Cues for Signs of Deception

While not foolproof, body language can provide valuable insights. Watch for:

• Increased nervousness: Fidgeting, avoiding eye contact, excessive blinking.
• Defensive postures: Crossing arms, turning away, or sudden rigidness.
• Speech changes: Hesitations, stammering, or overly detailed explanations.
• Microexpressions: Brief flashes of fear, guilt, or surprise.

A combination of these behaviors, rather than a single gesture, often indicates dishonesty.

Step 5: Identify Verbal Cues of Dishonesty

Beyond body language, pay close attention to speech patterns. Deceptive individuals may:

• Avoid direct answers and instead repeat the question.
• Overuse qualifiers like “to be honest” or “to tell the truth.”
• Provide vague or overly complex explanations.
• Shift blame to others without taking any responsibility.

Step 6: Utilize Cognitive Interview Techniques

Cognitive interviewing helps uncover inconsistencies in a subject’s story by making them recall events in different ways. Techniques include:

• Asking them to recount the story in reverse order.
• Requesting detailed sensory descriptions of events.
• Encouraging them to explain the same incident from another person’s perspective.

These methods make it harder for liars to keep their story straight.

Step 7: Document Everything Accurately

Every statement, behavior, and observation should be documented thoroughly.

• Record exact quotes when possible.
• Note behavioral changes during key questions.
• Keep a record of timestamps and sequence of responses.

Proper documentation ensures that findings hold up in legal or disciplinary proceedings.

Step 8: Close the Interview Effectively

At the end of the interview:

• Summarize key points and confirm the interviewee’s statements.
• Allow them to clarify or add anything.
• Thank them for their time while maintaining a professional demeanor.
• Securely store your notes and findings.