When fraud is suspected, what is the sequence the PLM should follow?

• A. Publish a public notice
• B. Investigate promptly, escalate to authorities, implement corrective actions
• C. Document internally and hold no escalation
• D. Notify customers first

Answer: (B)

When fraud is suspected, the first priority is to quickly gather facts and evidence to understand what happened and assess the scope of the issue. The sequence should be to investigate promptly, escalate to the appropriate authorities or regulators as required, and then implement corrective actions to remediate weaknesses and prevent recurrence. Publishing a public notice or notifying customers first can compromise the investigation and tip off potential perpetrators, while simply documenting internally without escalation leaves the organization exposed to ongoing risk. This order—investigate, escalate, and fix—ensures you act swiftly, comply with legal obligations, and strengthen controls moving forward.