How to become A Fraud Examiner

In the complex interaction between deception and vigilance, Fraud Examiners stand as modern-day sentinels to safeguard the sanctity of financial systems and uphold the integrity of organisations and society at large.

• Certified Fraud Examiner
• Forensic Audit Expert
• Fraud Analyst
• Compliance Officer
• Internal Auditor
• Anti-Fraud Specialist

What do Fraud Examiners do?

A Fraud Examiner would typically need to:

• Seek evidence to detect, track, investigate, and prove or disprove allegations of suspicious activity, such as fraud or money laundering
• Lead or contribute to fraud investigation operations; conduct field surveillance to put together essential details related to the case
• Coordinate investigative efforts with concerned law enforcement officers and attorneys
• Review reports of suspected fraud to determine the need for further investigation; evaluate business dealings to identify risk areas for fraud
• Interview likely suspects; question them about details surrounding the supposed fraud
• Conduct interviews with employees to establish their awareness of fraud activities, including bribery and embezzlement within their organisation
• Interview witnesses to obtain case-related information; interview victims to assess how much money they lost as a result of the fraud
• Gather and review financial statements and related documents to unearth irregularities in billing trends, financial relationships, and regulatory compliance procedures
• Collect recorded statements; create and maintain logs and databases of pertinent information
• Prepare a comprehensive report of investigative activities, findings and conclusions after an investigation is complete
• Manage evidence in support of subsequent civil litigation or criminal prosecution; obtain and serve subpoenas; arrest individuals to be charged with fraud
• Testify in court; submit well-documented case files to the magistrate or grand jury for prompt indictment of the suspects
• Work with insurance companies to investigate claims of fraud involving fire or natural disaster damage to property
• Recommend appropriate next steps; negotiate with responsible parties to arrange for recovery of losses due to fraud
• Advise businesses and agencies on ways to improve and prevent fraud detection; research, design, implement, evaluate, or maintain fraud detection tools and procedures
• Train subordinates in fraud detection and prevention techniques

Fraud Examiners may need to spend time in offices making phone calls, researching cases and writing reports. They must work in the field to conduct interviews and surveillance. In addition, they may need to attend court proceedings.

Travel is frequently necessary to gather evidence and conduct interviews, on-site audits, and training. Fraud Examiners who work remotely, for multinationals, in industries prone to high levels of fraud (finance, healthcare, government), and on cases with a national or international scope may also need to travel to satisfy specific job requirements.

Although most typically have a 40-hour week, Fraud Examiners often work longer evenings and weekends to complete investigations or meet deadlines. Self-employed consultants may have more flexible work schedules.

Research suggests that flexible hours and generous telework policies appeal more than salary to the younger generation. There has been an incremental increase in employers willing to give promising employees a chance to adjust their schedules per the job demands.

Finding a new job may be challenging. Fraud Examiners can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

Fraud Examiners are generally employed by:

• Large Corporate Houses & Businesses
• Government Agencies
• Financial Institutions
• Insurance Companies
• Law Enforcement Entities
• Consultancy Firms
• Non-Profit Orgaisations
• Healthcare Institutions
• Educational Providers
• Legal Firms

Professional associations and organisations, such as the Association Of Certified Fraud Examiners (ACFE), are crucial for Fraud Examiners interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. The Expert Witness Institute offers members a voice and supports experts from all professional disciplines. 

Professional associations provide members with continuing education, networking opportunities, and mentorship services. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Inefficient handling of sensitive information that can tip off potential fraudsters or compromise ongoing investigations
• Resistance from colleagues, managers, and the organisation’s leadership who feel the investigation is a negative reflection of themselves or their department
• Restricted access to data, tools, or personnel required for comprehensive fraud detection
• Strict adherence to relevant laws and regulations while obtaining evidence and conducting interviews
• Language barriers, cultural differences, jurisdictional issues, and varying legal systems in cases involving international fraud 
• Keeping skills and knowledge up-to-date with the rapidly evolving fraud detection tools, data analytics techniques, and technology
• Balancing the need for a thorough investigation with the urgency to prevent further losses or damage
• Probable emotional toll and burnout due to working with cases involving deception and financial loss and their impact on victims
• Ineffective communication of complex findings and recommendations to management and legal authorities that may negatively impact decisions and potential legal actions
• Failure to stay ahead and adapt to new tactics and schemes developed by fraudsters
• Lack of work-life balance in case of a heavy workload

An alternate way to gain certification as a Fraud Examiner is to accrue at least two years of work experience in accounting, finance, banking, law enforcement, or computer forensics.

Students will benefit from tasks outside the classroom that align perfectly with lessons inside it. One may hear countless stories from more experienced professionals and obtain valuable hands-on experience when they turn seemingly routine incidents into unique learning moments.

Many law enforcement, military and secret service veterans take up fraud examinations after putting in at least 20 years of active duty in crime analysis and investigations. Prior work experience as bill and accountant collectors, claims adjusters, paralegals, or process servers may also serve the purpose of essential skills in data analysis and legal audits.

RNs and LPNs desirous of working as Fraud Examiners will benefit from prior experience in a special investigation unit that imparts prerequisite knowledge and understanding of pharmacy and medical claims processing. 

The experience may also help determine whether the public, private or voluntary sector is best suited to realise one’s ambitions. Your educational provider’s career service department can provide information about viable work placements, internships and voluntary work opportunities in diverse sectors.

Even while in high school, you can check with a teacher or counsellor about relevant work-based learning opportunities available in your school or community that can help you connect your school experiences with real-life work.

Join debate and public speaking clubs and participate in writing competitions to enhance your communication skills. Pursue internships and volunteer opportunities related to finance, accounting, or business during your summer breaks or after school to get a taste of the profession and begin building a professional network.

Start reading books, articles, and online resources about fraud examination and investigative techniques to familiarise yourself with diverse types of fraud and the methods used to detect and prevent it.

Acquaint yourself with spreadsheet software, such as Microsoft Excel and data analysis tools favoured by Fraud Examiners in the discharge of their duties. Learn about and practice ethics, honesty, and integrity, values crucial to the profession.

Interview or job shadow experienced Fraud Examiners to seek guidance in preparing for a career in fraud examination while proving your commitment to course providers and prospective employers. 

Fraud Examiners typically hold an accredited bachelor’s degree in forensic accounting, criminal justice, accounting, business, or finance. Coursework may include statistics, economics, finance marketing, and business administration.

Some employers may prefer candidates with a master’s degree in forensic accounting, fraud investigation, financial crime management, or digital forensics. A master’s degree also helps interested professionals earn the coveted Fraud Examiner certification.

Relevant high school courses like mathematics, accounting, economics, business, and computer science will help develop essential numerical, research, computer, time management, critical thinking, and analytical skills. English and speech classes will help you build your research, writing, and oral communication skills.

Remember that completing a particular academic course does not guarantee entry into the profession. Be that as it may, professional qualifications and transferable skills may open up more than one door.

Do your homework and look into all available options for education and employment before enrolling in a specific programme. Reliable sources that help you make an educated decision include associations and employers in your field. 

Certification demonstrates a Fraud Examiner’s competence in a skill set, typically through work experience, training, and passing an examination. Successful certification programs protect public welfare by incorporating a Code of Ethics.

It may vary across different regions, but employers usually expect applicants to have certification in fraud examination,  professional investigation, and forensic accountancy from an objective and reputed organisation. While not always a legal requirement, these certifications carry significant weight in the industry and can significantly enhance one’s credibility and job prospects.

Registered Nurses (RNs) and Licenced Practical Nurses (LPNs) who wish to become Fraud Examiners must pursue certification in health care fraud examination. Meanwhile, individuals who want to specialise in negligence or criminal defence investigation acquire certification in legal investigation.

Ensure you consult recognised professional organisations and local regulatory bodies to understand the licencing requirements and best practices in the area where you plan to work as a Fraud Examiner.

Fraud Examiners may also need to undergo an employment background check, including but not limited to a person’s work history, education, credit history, motor vehicle reports (MVRs), criminal record, medical history, use of social media, and drug screening

Performance, experience, and acquiring professional qualifications drive the career progression of Fraud Examiners. Those employed by organisations may advance to management and executive-level positions within the team, department, or company as Senior Investigators before eventually becoming Forensic Directors.

Some incumbents may become self-employed and operate as Consultants from their own firms.

The desire to accelerate career growth and personal development has an increasing number of millennials choosing to job hop and build a scattershot resume that showcases ambition, motivation, and the desire to learn a broad range of skills.

Studies prove that job hopping, earlier dismissed as “flaky” behaviour, can lead to greater job fulfilment. Employees searching for a positive culture and exciting work are willing to try out various roles and workplaces and learn valuable, transferable skills along the way.

Patient, detail-oriented and dexterous Fraud Examiners with numerical, analytical, problem-solving, and communication skills and requisite certifications have the best job prospects.

Continuing professional development (CPD) will help an active Fraud Examiner build personal skills and proficiency through work-based learning, a professional activity, 

formal education, or self-directed learning.

Most employers offer on-the-job training in processes and procedures specific to the new hire’s role. The organisational size and complexity of the particular position will determine whether the activity requires a few weeks or months.

Attend industry events and be in tune with current events and trends in money laundering, criminal tools and techniques, and fraud prevention. Attend courses and conferences, undertake research, and read trade publications to track technical developments and changes in legislation.

In addition to offering the opportunity to continually upskill, regardless of one’s age, job, or level of knowledge, CPD also enables the periodic renewal of desirable certifications, which increase your chances of advancement and becoming an independent consultant.

Fast Facts

The average organisation loses five per cent of revenue annually due to fraud. Although many organisations rely heavily on external audits for fraud detection, it usually helps in around 4% of cases. 

Anonymous tip lines in an organisation remain the best way to detect occupational fraud. The most common behavioural red flags include living beyond one’s means, complaining about inadequate pay, refusing to take a vacation, and stepping away from their position for fear of being discovered. 

Corruption is the most common type of fraud worldwide. Conversely, financial statement fraud happens in less than 10% of cases but has the highest median loss, around USD 975,000. Multiple insiders are three times more likely to commit it than individuals.

To Lose Patience Is to Lose the Battle

Fraud traces often remain well-hidden and financial fraud can be almost impossible to detect. Slow-moving fraud examinations can test the patience of even saints. Fraud Examiners who persevere patiently can steer clear of frustration and avoid throwing a spanner in the works by speeding up the investigation.

Current Scenario

The employment outlook of a particular profession may be impacted by diverse factors, such as location, economic conditions, industry developments and focus on fraud prevention.

Increasing awareness of fraud and stringent regulatory requirements in vulnerable industries such as finance, healthcare, insurance and government leads to a rise in demand for Forensic Examiners with expertise in digital forensics and data analytics who can collaborate remotely with international teams to handle cross-border investigations. 

Potential Pros & Cons of Freelancing vs Full-Time Employment

Freelancing Fraud Examiners have more flexible work schedules and locations. They fully own the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.

On the other hand, full-time Fraud Examiners have company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.

Fraud at higher organisational levels takes longer to detect. The median duration of employee-perpetrated fraud is 12 months but doubles for owners and executives.

In the realm of risk and resilience, Fraud Examiners decipher the hidden threads of deceit with sharp minds and unwavering conviction to expose the elaborate webs woven by cunning fraudsters.

“The investigator should have a robust faith - and yet not believe.”

Claude Bernard