Final answer:
'Predication' in the context of the question refers to the reason to believe that fraud may be occurring, providing a basis for an investigation. This term is primarily used in the field of law. It emphasizes the importance of credible evidence or reasonable suspicion to initiate an investigation.
Step-by-step explanation:
In the context of the question, 'predication' means 'reason to believe that fraud may be occurring.' When predication exists and conditions warrant, an investigation should take place. This term is commonly used in the field of law to refer to the justification or basis for initiating an investigation or suspecting fraudulent activity.
For example, if a bank receives information that a customer's account has been compromised and there are irregularities in the transaction history, this could be considered predication for launching an investigation into fraudulent activity.
It is important to note that predication should be based on credible evidence or reasonable suspicion and not be purely speculative. It serves as a legal basis to commence an investigation and gather further evidence to substantiate or refute the suspicion of fraud.