How can social media be a useful tool in fraud investigations?

Social media serves as a valuable tool in fraud investigations primarily because it provides insights into an individual's behavior and alliances. Investigators can analyze public profiles, posts, and interactions to gather information that reflects the individual's lifestyle, relationships, and potential motives for fraudulent activity. This access to personal data can help reveal inconsistencies in a person’s story or uncover connections to others involved in illicit activities. Additionally, the digital footprint left by social media can provide leads that may not be available through traditional investigative methods.

The other options do not accurately represent the utility of social media in fraud investigations. Creating a false identity for undercover operations doesn't align with the investigative objective of uncovering the truth. Discounts for investigative services are unrelated to the capabilities of social media. Limiting the ability to track digital transactions is actually contrary to the reality; social media assists in tracking and provides additional data rather than hindering digital transaction oversight.