The number #1 Ethical Rule of Fraud Detection

If you see fraud, and do not say fraud, you are a fraud*

Practically that means, when you detect #fraud, you have a couple of options and 1 obligation.

🚨 The obligation
You register it as fraud and report about it. Everything after that is “optional”.

✅ The options
1. You compensate the victim AND you (try to) find the fraudsters and hold them accountable (with or without help of the official authorities). This also means banning them from your platform
2. You compensate the victim BUT you do not pursue the fraudsters 
3. You don’t do anything further than the obligation mentioned above

Of course, all the options have consequences that you need to accept. 

❓There are several considerations that come into play in the decision making, such as and definitely not limited to: laws about the type of fraud in your country, financial risk appetite, fraud risk appetite, being a public or a private company, repetitional damage, further ethical rules in your organisations, how you feel about a certain case, what other ethical rules you want to live by as a person or as a company, etc. and so on.

🙈 Plausible deniability…
…does not exist here. Once you see or detect fraud, you need to act.

*inspired by Antifragile, things that gain from disorder by Nassim Nicolas Taleb p. 15 prologue