Fraud Loss Quantification Expert Witness

Scope of Expert Analysis

• Tracing of funds from pre-fraud position through fraudulent transactions to net loss suffered
• Quantification of direct financial loss arising from the fraudulent conduct
• Assessment of consequential loss where causation can be established
• Interest calculations on proven loss, with methodology disclosed in the report
• Reconciliation of loss schedules against underlying financial records and disclosure
• Expert report compliant with the applicable procedural rules of the instructing jurisdiction

Typical Instructions

• Civil or criminal fraud proceedings where the quantum of loss is disputed or unclear
• Settlement negotiations requiring an independent, defensible loss figure
• Insurance claims where fidelity or professional indemnity cover depends on proven fraud loss
• Asset recovery proceedings where the court requires a rigorous financial reconstruction
• Opposing party has served a loss schedule that requires independent scrutiny or rebuttal

Methodology & Delivery

• Review of pleadings, disclosure, and financial records to establish the factual matrix
• Forensic reconstruction of transaction flows and identification of misappropriated funds
• Application of recognised quantification methodology with full disclosure in the expert report
• Clear separation of proven loss, estimated loss, and excluded items
• Preparation of a report structured for court use, with assumptions and limitations stated explicitly

Related Expert Witness Services

Frequently Asked Questions

How does a forensic accountant quantify fraud loss?

A forensic accountant quantifies fraud loss by tracing the claimant's financial position before and after the fraudulent act, identifying the direct financial loss caused by the fraud, and applying the appropriate methodology for the specific fraud type — such as counterfactual analysis for investment fraud, or direct loss calculation for embezzlement. The methodology is fully disclosed in the expert report.

What is the counterfactual method in investment fraud loss quantification?

The counterfactual method in investment fraud loss quantification asks: what would have happened to the claimant's money if the fraud had not occurred? The expert models the return that a legitimate, suitable investment would have produced over the same period, then compares this to the actual outcome. The difference between the counterfactual return and the actual loss is the investment fraud loss.

Can you provide fraud loss expert evidence for international arbitration?

Yes. Fraud Loss Expert provides forensic accounting expert witness reports for international arbitration proceedings — including ICC, LCIA, SIAC, AAA/ICDR, and ICSID. Reports are prepared to the expert witness rules of the applicable arbitration institution and the applicable law governing the dispute.

What is APP fraud and how is the loss calculated?

Authorised Push Payment (APP) fraud occurs when a victim is deceived into authorising a payment to a fraudster. Loss is calculated as the total amount of payments made as a result of the fraudulent instruction, less any amounts recovered. Forensic accountants analyse the payment records, trace funds, and produce an expert report quantifying the total loss.

What must a CPR Part 35 fraud expert report contain?

Under CPR Part 35 and Practice Direction 35, a fraud loss expert report must include: the expert's qualifications, a summary of instructions, the facts and materials relied upon, the expert's opinion and methodology, a range of opinion where relevant, a summary of conclusions, and a statement of truth confirming the expert's duty to the court.