Asset investigations: The role of online research
As an investigator, one of the most frequently-asked questions is, “How can I get a better understanding of an individual’s or entity’s financial situation?” It might be about due diligence, a fraud investigation, or whether or not to move ahead with litigation, and an asset investigations can add critical information to the process. There’s a lot to know about asset research – these types of investigations can be complex – and it helps to understand what’s involved and the role of online research:
What exactly is an asset?
An asset is a resource owned or controlled by an individual or entity that has the potential to produce positive economic value. In short, it’s something that adds to the bottom line. Assets can include houses, land, businesses, jewelry, or any other tangible item, or intangible items such as book royalties, patents, or even brand recognition.
What’s involved in asset investigations?
An asset investigation goes beyond a simple snapshot of wealth. It’s a meticulous process aimed at painting a complete financial picture. This is accomplished by determining net worth, identifying spending patterns, locating hidden assets, and creating a financial and behavioral profile of your subject.
What are the two approaches to asset investigations?
1. Direct Approach: This method relies on direct access to an individual’s or company’s financial books and records, including account statements, insurance policies, tax records, and other official documents. But maybe you don’t have legal access because its too early in the process or you’d rather not alert your subject. Even once you have the financial records, they don’t always tell the full story. That’s where the second approach might come in.
2. Indirect Approach: The indirect method pieces together the financial puzzle using external sources, including interviews, surveillance, and online research.
Let’s talk more about online research and it’s role in asset investigations.
What’s involved in online asset research?
Online research goes beyond Google, digging deep, with the following objectives in mind:
Identify assets: Discover publicly listed real estate, business interests, professional licenses, and even high-value possessions.
Identify liabilities: Equally important, identify financial distress in the form of bankruptcies, liens, judgments, or ongoing court cases.
Identify leads: Look for connections to other individuals or entities, patterns of behavior, and potential new avenues for investigation.
Get to know your subject: Learn about lifestyle, interests, past endeavors, and what might be important to them (potential leverage).
Collect visual evidence: Photos from social media or news articles can confirm asset ownership or lifestyle indicators.
When do we use online research?
Early in the process: It’s invaluable for preliminary assessments. Is there enough financial activity to warrant further, more costly investigations or litigation?
Preparation for deeper dives: Online findings can inform and focus other methods of asset investigations
Verification: After a direct investigation, online research can be used to cross-reference findings. Do the numbers match what’s publicly available?
The power of online research in asset investigations lies in its ability to uncover valuable leads and corroborating evidence, especially when direct access to financial records is limited. The purpose of online research isn’t to replace other techniques, but to inform and support the asset investigation as a whole. By using a strategic approach, investigators can leverage online sources to stay on track and get closer to the answers our clients need.
My recently-updated online course, Beyond the Balance Sheet: Strategies for Finding Assets Online, covers these topics and more. Take a look at my training page for a full list of all my course.
