How to Hire a Private Investigator for Fraud, Background Check and Surveillance

A Malaysian company finds that there have been changes to a supplier's bank details, just prior to a large payment. Is it an administrative mistake or fraud? While hiring an investigator may help, the initial step should be to preserve the records and determine what needs to be verified.

If you have already paid a suspected scammer, notify your bank and Malaysia's National Scam Response Centre (997) right away. Avoid delay while waiting for an investigator.

Before you hire a private investigator, there are a number of things you should know.

Set a single, clear goal. In the case of a payment in question, that could be: Who agreed to the alteration, and what paperwork is there to support it?

Draft appropriate invoice, e-mail, dates, transaction numbers, etc. Maintain original records. Inform the investigator about what you know, but separate the facts from guesses.

Set up an agreement on a deliverable, either a signed time line or a written result. An open-ended request to “find everything” can result in unnecessary costs and privacy issues.

Can I Hire a Private Investigator in Malaysia?

Yes, as long as the agency and their activities are within the scope of Malaysian law. Private agencies are under the control of the Private Agencies Act 1971. Section 2(b) relates to finding out information about the conduct or affairs of persons and section 2(a) to the guarding and protection.

Go to the Ministry of Home Affairs eSIMS portal and verify the current licence of the agency. Company registration with SSM will not compensate for the relevant KDN licence.

A general right for an investigator to access private premises, bank accounts, read someone else's emails, etc. Activities that involve handling personal information for commercial purposes may be subject to the Personal Data Protection Act 2010 (as amended). Consult a Malaysian attorney prior to conducting sensitive surveillance or employee checks.

When you want a legitimate investigator, you'll know where to find one.

Always begin with licensed agencies and lawyer/corporal referrals. Check the company name, type of licence and contact information.

Inquire about his or her familiarity with the type of case you are dealing with. A company that does a lot of commercial fraud investigations may not be the best fit for a personal dispute.

Ask for a written proposal including the identity of the case manager, lawful methods, reporting schedule, fees and treatment of confidential records. Inquire about any work to be subcontracted.

Choosing the right service between Fraud, Background Checks and Surveillance.

Authorised records can be used to reconstruct transactions for fraud investigations. For instance, an investigator can look at a purchase order and the process by which an invoice was changed and the payment approval was delayed. If you suspect someone of a crime, it should also be reported to the relevant authorities.

The background check should test specific claims, rather than sift through a person's entire private life. For a business partner, information from the SSM can be used to confirm the registration of a company and information about its Directors. When contacting an employer, identify the facts and secure necessary notices or consent, if applicable.

When it comes to surveillance, extra precautions are required. Inquire about the need for this, what observations are suggested and how observations will be reported. Sometimes, an authorised document review or interview is the answer, rather than surveillance.

Some of the errors that you should avoid while picking an investigation firm.

Be wary of agencies that can guarantee results or access private bank records, passwords or intercepted communications without permission.

Avoid purchasing “three days of surveillance” before determining the issue. Ask for a first impression and put in writing that further work is accepted.

Review proposed report format. Should distinguish between facts and conclusions, cite evidence and describe what cannot be confirmed. Unsupported is a valid result of a finding on an allegation.

The role that Private Security Services play in providing additional security

An investigation sets out to determine what might have happened. Private security services look to limit future exposure by access controls, patrolling and incident reporting.

Investigators may investigate authorised transaction records for repeat instances of warehouse losses. The gate log system and stock-release procedure may be improved separately by a guarding provider.

Are different functions. Private security companies do not always possess a licence for investigation work. Verify each service before signing.

Final Thoughts

Select a private investigation company in Malaysia based on its track record, legitimate methods, report quality and license, not on promises of sensational findings.

The correct investigator assists you to choose based on solid evidence. Good security controls then help to prevent the same weakness from causing another problem.