In the context of fraud detection, what is required to take action?

Taking action against fraud mainly relies on the detection of fraudulent activity. It is sufficient for the potential presence of fraud to be identified before any measures can be initiated. This means that if a loan originator or any involved party notices irregularities that suggest fraudulent behavior, that awareness prompts the necessary reviews, investigations, or interventions.

While formal documentation and client reports are beneficial and may strengthen the case or facilitate the process, they are not prerequisites to taking action. Similarly, proving fraud in court is a separate legal process that occurs after initial detection and is not necessary to trigger action against suspected fraudulent activities. Therefore, merely detecting fraud provides the foundation for response and intervention in the context of preventing further issues and protecting stakeholders.