Analyze A Corporate Forensic Investigation Scenario Involvin

Analyze a corporate forensic investigation scenario involving financial discrepancies

You are senior forensics investigator in a corporate firm that handles large financial transactions for a variety of customers. The head of Internal auditing has called to request that you perform forensic analysis of an employee's computer. The auditor has found evidence of financial discrepancies but needs you to confirm how financial transactions were done on the computer.

The employee is very knowledgeable in both the financial and computer areas and has been with the company for many years. Determine what steps you will follow to begin the investigation and what questions you might ask the internal auditor. Considering the expertise of this user, explain how you believe the user may have hidden or masked her actions. Describe what actions you might take to investigate the user's methods. Assuming you find evidence, describe the steps you would then take to formulate a report and what specific items need to be included in this report.

Paper For Above instruction

Performing a forensic investigation of financial discrepancies in a corporate setting requires a systematic and meticulous approach, especially when the employee involved possesses advanced knowledge of both finance and computer systems. The goal is to uncover any evidence of misappropriation, understand the methods used to hide or mask financial actions, and prepare a comprehensive report for management and regulatory compliance. This process encompasses initial planning, evidence collection, analysis, and reporting stages, each with specific critical steps and considerations.

Initial Steps in the Investigation

The first step is to establish the scope and objectives of the investigation clearly. This involves consulting with the internal auditor to understand the specific discrepancies identified, the nature of suspicious transactions, and any initial findings or anomalies. I would request access to the employee's computer and any relevant logs, backup files, or related documentation. It is vital to create a forensic image of the hard drive to preserve the original evidence, ensuring that subsequent analysis does not alter the data. This step helps maintain the integrity of the evidence and allows for detailed analysis without risking contamination.

Next, I would perform a preliminary assessment by examining system metadata, timestamps, and access logs to identify any irregularities such as unusual login times, deleted files, or altered data entries. I would look for signs of tampering, such as encrypted or hidden files, use of anonymizing tools, or evidence of data wiping. Additionally, understanding the employee's typical behavior patterns through historical data aids in identifying deviations that could signal suspicious activity.

Questions for the Internal Auditor

Effective communication with the internal auditor is vital to guide the investigation. Questions I would likely ask include:

• What specific transactions or periods exhibit discrepancies?
• Are there particular files, folders, or systems the employee had access to that should be scrutinized?
• Have there been any previous concerns or known behavioral patterns associated with this employee?
• Are there existing security measures, such as intrusion detection or audit trails, that may have been bypassed or manipulated?
• Was the employee involved in any key systems or had administrative privileges?
• Are there other devices, such as USB drives or external storage, that need examination?

Understanding Potential Methods of Hiding or Masking Actions

Considering the employee’s extensive knowledge, they might have employed techniques to obfuscate their activities. These could include creating hidden partitions, encrypting files, using proxy or anonymizing tools, or manipulating timestamps to mask activity periods. They might also have employed advanced methods such as modifying system logs, employing rootkits, or using command-line tools to conceal malicious scripts.

To detect such practices, I would analyze system and application logs comprehensively, looking for anomalies such as altered timestamps, encrypted archives without clear provenance, or unusual registry entries. Hash analysis of files can detect modifications or hidden files. Additionally, examining the registry and system configuration for signs of rootkits or malware indicators is essential. Use of forensic tools such as EnCase, FTK, or Sleuth Kit can assist in uncovering hidden data or tampered artifacts.

Actions to Investigate Hidden or Masked Activities

Investigative actions include live data acquisition (if possible), volatile memory analysis to detect running processes and hidden processes, and deep file system scan for hidden or encrypted files. Further, network activity logs should be scrutinized for suspicious data exfiltration or unauthorized remote access. Decrypting encrypted data, if possible, can reveal masked transactions.

In cases where timestamps are manipulated, re-constructing activity timelines and correlating data from multiple sources (email logs, server logs, backup files) builds a more accurate picture of user activity. Employing timeline analysis tools enhances the detection of hidden activities.

Formulating the Report

If the investigation yields evidence of misconduct, I would develop a detailed report highlighting:

• Objectives and scope of the investigation
• Methodology and tools used during analysis
• Findings, including specific evidence of data manipulation, unauthorized access, or financial discrepancies
• Methodologies employed by the employee to conceal activities
• Timeline of suspicious activities
• Conclusions based on evidence
• Recommendations for remedial actions, policy updates, or further investigations

The report should include clear, non-technical summaries for management and detailed technical appendices for forensic review. It must also preserve the chain of custody of all evidence and ensure confidentiality and compliance with legal standards.

Conclusion

Investigating financial discrepancies involving a highly knowledgeable employee demands a structured approach grounded in forensic best practices. By carefully planning the investigation, asking targeted questions, employing advanced forensic tools, and preparing meticulous documentation, an investigator can uncover concealed activities and support sound managerial decisions. Ultimately, the goal is to uphold the integrity of the firm's financial systems and ensure accountability through thorough and transparent analysis.

References

• Casey, E. (2011). Digital Evidence and Computer Crime: Forensic Science, Computers, and the Law. Academic Press.
• Nelson, B., Phillips, A., & Steuart, C. (2014). Guide to Computer Forensics and Investigations. Cengage Learning.
• Rogers, M. K. (2013). "Digital Forensics Techniques for Financial Crime Analysis," Journal of Financial Crime, 20(4), 325-339.
• Carrier, B. (2005). File System Forensic Analysis. Addison-Wesley.
• Garfinkel, S. (2010). Digital forensic research: The next 10 years. Digital Investigation, 7(2), 64-73.
• Casey, E. (2017). Handbook of Digital Forensics and Investigation. Academic Press.
• Thakur, R., & Sudhakar, V. (2018). "Forensic Data Analysis in Financial Sector," International Journal of Computer Forensics, 4(3), 112-130.
• Magnusson, M. (2009). Computer Forensics: Principles and Practices. Routledge.
• Somer, R. (2016). "Investigating Data Masking Techniques Using Forensic Tools," Cybersecurity Journal, 12(1), 45-59.
• ISO/IEC 27037:2012, Guidelines for identification, collection, acquisition and preservation of digital evidence.