Final answer:
In the past, most frauds were detected by examining transaction records and documents if there are anomalies that could represent fraud. Surveillance and undercover operations, as well as providing ways for people to report suspicions of fraud, were also used to detect fraud.
Step-by-step explanation:
Frauds in the past were most often detected by examining transaction records and documents if there were anomalies that could represent fraud. This method involves analyzing financial data and identifying inconsistencies or suspicious activities that may indicate fraudulent behavior. For example, if a company's financial records show unusual transactions or unexplained discrepancies, it could be a red flag for potential fraud.
Moreover, surveillance and undercover operations can also be used to detect fraud. These methods involve monitoring and observing individuals or entities suspected of engaging in fraudulent activities. By closely watching their actions and gathering evidence, investigators can uncover fraudulent schemes.
Additionally, providing ways for people to report suspicions of fraud is another effective method of detecting fraud. This encourages individuals who suspect fraudulent behavior to come forward and provide information, which can then be investigated further.