Can this agreement be signed electronically?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

Do I need a notary or witnesses?

Not usually for the agreement itself, but state law or counterparties may require notarization or witnesses for particular attachments or for recording. Verify with local counsel.

What if the names do not match on evidence?

Document the discrepancy and attach identification. Mismatched names can delay verification and recovery; note any aliases or former names in the disclosure.

How should sensitive data be handled?

Redact unrelated personal data before wider distribution. Limit access to those with a need to know and record disclosures in the audit trail to maintain compliance.

Is an eSigned copy admissible in court?

Yes, when the eSignature meets ESIGN/UETA criteria and a robust audit trail is available. Preserve metadata, timestamps, and authenticated signer information.

Who should retain the original signed file?

The recipient organization typically maintains the official copy, including audit trails and attachments, under the retention policy aligned with IRS, HIPAA, and state requirements.

Electronic Signature
Templates
Legal
Fraud Disclosure Agreement

Fraud Disclosure Agreement

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Fraud Disclosure Agreement

This Fraud Disclosure Agreement ("Agreement") is entered into as of Effective Date: by and between Disclosing Party Name: with principal address: and Recipient Name: with principal address: . Disclosing Party and Recipient are each a "Party" and collectively the "Parties."

Recitals

WHEREAS, Disclosing Party has discovered or possesses information relating to certain alleged or confirmed fraudulent activity involving persons, assets, records, or transactions (the "Fraudive Activity"), and intends to disclose details of such activity to the Recipient for the purposes of investigation, mitigation, recovery, compliance, and related legal processes;

WHEREAS, Recipient requires sufficient information to investigate, preserve evidence, coordinate with authorities, and take remedial measures, and recognizes that such information may be confidential, sensitive, or privileged;

WHEREAS, the Parties desire to set forth their respective rights and obligations with respect to the disclosure, use, protection, and preservation of information relating to the Fraudive Activity.

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

1. Definitions

1.1 "Confidential Information" means all non-public information disclosed by Disclosing Party to Recipient relating to the Fraudive Activity, including but not limited to identities of persons involved, transaction records, internal reports, investigative findings, communications, financial data, and copies or summaries of documents, whether disclosed orally, in writing, electronically or by inspection of tangible items.

1.2 "Permitted Recipients" means Recipient's officers, directors, employees, agents, legal counsel, forensic accountants, insurance carriers, and external investigators who have a need to know the Confidential Information and who are bound by confidentiality obligations at least as protective as those set forth in this Agreement.

2. Disclosure

2.1 Disclosing Party shall disclose to Recipient the details of the Fraudive Activity described below and any supporting documents reasonably requested by Recipient for the purposes stated herein.

Describe the Fraud Incident (include dates, persons involved, and summary of events) Estimated financial impact (if known)

2.2 Disclosing Party shall identify and, where reasonably available, provide copies or summaries of supporting records, including but not limited to transaction logs, emails, ledgers, security footage, and forensic reports.

3. Scope and Use of Information

3.1 Recipient shall use Confidential Information solely for the purposes of investigating, mitigating, remediating, reporting to competent authorities, pursuing recovery, complying with legal obligations, and enforcing rights under this Agreement.

3.2 Recipient shall restrict access to Confidential Information to Permitted Recipients and shall ensure such persons are informed of and comply with the confidentiality, preservation, and use obligations set forth herein.

Type(s) of alleged fraud (check all that apply)

Asset misappropriation Financial statement fraud Corruption/Bribery Cyber/information security fraud Other

If Other, describe

4. Confidentiality and Permitted Disclosures

4.1 Recipient shall keep Confidential Information strictly confidential and shall not disclose such information to third parties except: (a) to Permitted Recipients for the purposes authorized in this Agreement; (b) as required by law, regulation, or valid legal process; or (c) with the prior written consent of Disclosing Party.

4.2 If Recipient is compelled by law or legal process to disclose Confidential Information, Recipient shall, to the extent permitted by law, provide prior written notice to Disclosing Party and shall cooperate with Disclosing Party in seeking protective relief or other appropriate measures to preserve confidentiality.

5. Preservation of Evidence

5.1 Recipient shall preserve all physical and electronic evidence reasonably related to the Fraudive Activity and shall not alter, delete, destroy, or permit destruction of such evidence without prior written consent of Disclosing Party or as otherwise required by law. Recipient shall implement reasonable chain-of-custody protocols where applicable.

6. Cooperation and Assistance

6.1 The Parties shall reasonably cooperate in investigations, litigation, administrative proceedings, insurance claims, and recovery efforts. Cooperation may include sharing documents, providing witness statements, making personnel available for interviews, and coordinating communications with authorities.

7. Representations, Warranties and Disclaimers

7.1 Disclosing Party represents and warrants that, to the best of its knowledge after reasonable inquiry, the disclosures made pursuant to this Agreement are true and accurate in all material respects as of the date of disclosure. Disclosing Party further represents that it has the right to disclose such information to Recipient for the purposes set forth herein.

7.2 EXCEPT AS EXPRESSLY PROVIDED IN SECTION 7.1, ALL CONFIDENTIAL INFORMATION IS PROVIDED "AS IS" AND DISCLOSING PARTY MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

8. Indemnification and Liability

8.1 Recipient shall indemnify, defend and hold harmless Disclosing Party from and against any third-party claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising from Recipient's negligent or willful breach of this Agreement or unauthorized disclosure of Confidential Information.

8.2 Neither Party shall be liable to the other for incidental, consequential, punitive or exemplary damages arising out of or relating to this Agreement, except to the extent such damages arise from willful misconduct or gross negligence.

9. Remedies

9.1 The Parties acknowledge that monetary damages may be an inadequate remedy for breach of confidentiality or preservation obligations and that either Party may seek injunctive relief, specific performance, or other equitable remedies in addition to any other remedies available at law or in equity.

10. Notices

All notices, requests, consents, and other communications required or permitted under this Agreement shall be in writing and shall be delivered to the addresses set forth below or to such other address as a Party may designate by written notice to the other Party in accordance with this Section.

Notices to Disclosing Party - Contact Name and Address Notices to Recipient - Contact Name and Address

11. Amendment; Waiver; Counterparts

11.1 No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties.

11.2 No waiver by either Party of any breach of this Agreement shall be deemed a waiver of any other or subsequent breach.

11.3 This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument. Signatures transmitted by electronic means shall be binding.

12. Governing Law; Venue

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The Parties submit to the exclusive jurisdiction of the state and federal courts located in that State for resolution of disputes arising under this Agreement.

13. Entire Agreement; Severability

13.1 This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written.

13.2 If any provision of this Agreement is held to be invalid, illegal or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and the Parties shall negotiate in good faith a valid substitute provision that most nearly effects the Parties' intent.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date first written above.

Disclosing Party - Printed Name:

Recipient - Printed Name:

By:

Date:

What the Fraud Disclosure Agreement Covers

A Fraud Disclosure Agreement documents known or suspected fraudulent activity, the facts disclosed by the reporting party, and any limitations on liability or remedial steps agreed between parties. It records dates, affected accounts or transactions, and the identity of the reporter and recipient. Organizations use it to create a clear, auditable record for internal investigations, regulatory reporting, insurance claims, and potential civil or criminal referrals. The agreement helps establish timelines, preserve evidence, and set confidentiality and information‑sharing parameters while protecting both disclosing parties and recipients.

Why a Formal Fraud Disclosure Agreement Matters

A written fraud disclosure clarifies responsibilities, preserves evidence, and supports regulatory compliance. It provides documented intent and attribution required under the ESIGN Act when signed electronically (15 U.S.C. ch. 96) and can reduce disputes by aligning expectations for investigation and remediation.

Who Commonly Prepares and Signs This Agreement

Typical preparers and signers include compliance officers, claims teams, counsel, and affected account holders.

Financial institutions and fraud investigation teams handling account or payment fraud disclosures.
Insurance claims and risk managers documenting suspected insurance fraud and coverage issues.
Legal and compliance departments coordinating regulatory notifications and potential litigation holds.

Roles vary by industry but generally include both the reporting individual and a responsible organization representative for acknowledgement.

Key Elements to Include in a Professional Agreement

A complete Fraud Disclosure Agreement has standard sections that ensure clarity, legal defensibility, and ease of review by auditors or regulators.

Parties

Full legal names and contact details for the disclosing party and the recipient, with role definitions and authorized representatives for follow‑up.

Incident Summary

Concise description of suspected fraud: dates, transaction references, amounts, account numbers, and how the issue was identified to preserve a clear factual record.

Supporting Evidence

List of attached documents and data (logs, statements, screenshots) and a statement describing how evidence was collected and preserved.

Actions Taken

Immediate remediation steps, account holds, law‑enforcement referrals, regulatory notifications, and any interim protections implemented by either party.

Confidentiality

Scope of confidentiality, permitted disclosures, and exceptions for regulatory reporting, law enforcement, or legal obligations.

Signatures

Named signers, signature blocks with printed name, title, date, and statement of authority to bind the party signing the disclosure.

Essential Information Fields

Reporter name: Full legal name

Recipient name: Full legal name

Incident date: MM/DD/YYYY

Account reference: Account or transaction ID

Amount involved: Numeric value

Evidence list: Attached items

Step-by-Step: Completing the Disclosure

Follow these sequential steps to prepare, review, and finalize a Fraud Disclosure Agreement.

01

Gather evidence: Collect logs, statements, and screenshots before editing the form.
02

Draft facts: Write a concise factual summary without assigning blame.
03

Assign reviewer: Route to compliance or legal for verification and redaction needs.
04

Execute signatures: All authorized parties sign and date; retain audit trail for eSign.

Configuring an Online Completion Workflow

Set up a digital workflow to collect disclosures consistently and retain a complete activity log for audits.

Upload template file	Use PDF or DOCX input file for form
Add required fields	Place name, date, and signature fields
Set signer order	Define who signs and when
Enable authentication	Use email, SMS, or stronger methods
Archive copies	Save signed PDFs and audit trail

Where to Send or File the Completed Agreement

Decide destinations based on the nature of the fraud, internal controls, and any regulatory reporting requirements.

Internal compliance: Primary repository for investigation and retention
Legal counsel: For potential litigation or privilege review
Insurance provider: If a claim is anticipated or required
Law enforcement: If criminal referral or evidence submission is necessary

Digital Signing, Storage, and Sharing Requirements

Use an eSignature platform that provides an audit trail, secure storage, and appropriate authentication options for the disclosure.

Audit trail: Timestamps, IP address, and signer attribution
Authentication: Email, SMS, or stronger verification options
Export formats: PDF and PDF/A output supported

Typical Timelines and Processing Expectations

Establish internal deadlines for reviewing and acting on disclosures to support timely remediation and reporting.

Initial acknowledgement:

Acknowledge receipt within 1–3 business days

Preliminary review:

Conduct initial triage within 7–14 business days

Detailed investigation:

Complete substantive review within 30–60 days

Regulatory reporting:

File any required reports per agency timelines

Record retention:

Keep signed disclosure and evidence per retention policy

Common Errors to Avoid

Incomplete identifiers such as truncated account numbers that prevent effective correlation with transaction logs.
Using speculative or accusatory language instead of factual descriptions, which can complicate legal review.
Failing to capture the audit trail for electronic signatures, undermining the document's evidentiary value.
Not redacting sensitive third‑party data prior to wider distribution, creating privacy and compliance risks.

Risks and Potential Consequences of Errors

Regulatory fines: Possible state or federal penalties

Civil liability: Exposure to lawsuits or indemnity claims

Evidence loss: Weakened prosecution or recovery claims

Insurance denial: Claims denied for incomplete disclosure

Reputational harm: Customer trust erosion

Data breach risk: Unauthorized disclosure of PII

eSignature Pricing and Capability Comparison for This Agreement

Comparison of representative eSignature vendors on starting price, standard features, and HIPAA support. signNow is listed first per vendor ordering rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About Fraud Disclosure Agreements

Answers to common questions about completion, legal validity, and electronic signing for Fraud Disclosure Agreements.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
Do I need a notary or witnesses?
Not usually for the agreement itself, but state law or counterparties may require notarization or witnesses for particular attachments or for recording. Verify with local counsel.
What if the names do not match on evidence?
Document the discrepancy and attach identification. Mismatched names can delay verification and recovery; note any aliases or former names in the disclosure.
How should sensitive data be handled?
Redact unrelated personal data before wider distribution. Limit access to those with a need to know and record disclosures in the audit trail to maintain compliance.
Is an eSigned copy admissible in court?
Yes, when the eSignature meets ESIGN/UETA criteria and a robust audit trail is available. Preserve metadata, timestamps, and authenticated signer information.
Who should retain the original signed file?
The recipient organization typically maintains the official copy, including audit trails and attachments, under the retention policy aligned with IRS, HIPAA, and state requirements.

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