Certified Fraud Examiners

Why Become a Fraud Examiner?

Since our lives have migrated to the online arena, fraud has expanded at a rapid pace. Current estimates show that fraud is costing the economy $600 billion each year. This means that there is an increased demand for risk watchdogs, to ensure that public and private entities don't fall prey to bad actors. This demand has been fueled in no small part by the creation of the Consumer Financial Protection Bureau (CFPB). Accountants who wish to specialize their practice should consider becoming certified fraud examiners through the Association of Certified Fraud Examiners.

The ACFE certification provides accountants with a way to identify themselves as experts in the field of fraud examination. In fact, the credential opens up a variety of career choices. CFEs are found working for the government and private industry with career paths such as compliance officer, forensic accountant, internal/external auditor, private investigator, and even law enforcement. There are even top-level executive positions available for CFEs including chief compliance officer, chief risk officer, and audit executive.

What Is a Fraud Examiner?

A fraud examiner is a sort of accountant who is an expert in uncovering and rooting out fraud and the bad actors who perpetuate that crime. They are specially trained and certified to detect, investigate, and conclude fraud cases. Their work helps to protect consumers and corporations to avoid losing precious revenues to fraudsters. They also work with the authorities to make sure that they have the evidence they need to try the perpetrators in a courtroom.

What Does a Fraud Examiner Do?

A certified fraud examiner is a professional who is a white-collar, office worker with special training in discovering, investigating, and resolving fraud cases. They are found working for a variety of employers and some even work independently. In fact, CFEs may be found working for law enforcement, corporations, and as private investigators.

CFEs who work in law enforcement might primarily work on their computers in an office. However, they might also spearhead investigations in which they are called upon to collect evidence from various sources, interview suspects, brief undercover agents, and otherwise perform the duties of a detective. Sometimes, CFEs work undercover to collect evidence and uncover suspected fraud. CFEs are found in all areas of law enforcement including the federal, state, and local level.

CFEs in the corporate environment often scrutinize their employer's books to discover any possible cases of embezzlement or other theft. In these positions, CFEs are often referred to as auditors. Many fraud examiners work as forensic accountants who analyze financial data to investigate possible money laundering, insurance fraud, embezzlement, and more.

Private investigators and attorneys often employ CFEs as a way to uncover how their clients may have been defrauded by way of financial malfeasance. Many divorce cases, for instance, require that a CFE discover where certain assets and equities may have gone. In fact, a CFE might attain an additional credential to operate as a private investigator and establish a practice centered on forensic accounting and fraud investigations.

Requirements to Become a Certified Fraud Examiner

1. Degree Necessary

In order to sit for the ACFE examination and become a certified fraud examiner, candidates must first be members of the association in good standing and have a bachelor's degree or equivalent experience. That is to say, candidates can substitute experience for a college education. To satisfy this requirement, each missing year of a four-year degree is worth two years of experience. Thus, a candidate who has never completed any college should expect to document eight total years of experience in the field. It is therefore more expedient for aspiring CFEs to study for a degree than to accrue experience. In fact, there are many programs that offer specialized courses in forensic accounting and related topics.

2. Subject Focus

The CFE examination covers the four primary areas of a fraud examiner's professional life:

• Financial Transactions and Fraud Schemes: This portion of the test covers accounting terms and theory, fraud schemes, controls to thwart fraud schemes, and other auditing and accounting fundamentals.

• Law: To be effective as a fraud examiner, candidates should understand the rules of evidence, applicable civil and criminal law, the rights of the accused and accuser, and the importance of expert witness testimony.

• Investigation: Fraud examiners should be able to demonstrate knowledge of how to conduct an investigation, including how to research public documents, take statements from suspects and witnesses, interviewing techniques, clues for detecting deception, and how to prepare a thorough and effective report.

• Fraud Prevention and Deterrence: CFEs should understand the motivations behind fraud and then how to detect and prevent it. This portion of the exam covers the causes and conditions for white collar crime, conducting a risk assessment, and the ACFE Code of Professional Ethics.

3. Exams

The CFE examination is now conducted online. Aspiring fraud examiners can take the exam at any time or place, though it is recommended that they take the exam in a quiet, controlled environment. Test takers should verify that their computers meet the minimum standards for the exam. That is, they should have a high-speed internet connection and Windows 7, Windows 8.1, or Mac OSX 10.6 (Snow Leopard) or higher. Their monitor should support a resolution of 1280x1024 or greater. For the purposes of proctoring the closed-book and closed-notes examination, candidates are monitored by way of their computer's microphone and camera. Finally, the exam requires the latest version of either the Google Chrome or Firefox web browser, which should be set to support JavaScript, cookies, pop-up windows, webcams, and microphones.

If, for some reason, a candidate cannot satisfy the technical requirements and thus needs to take the test in person, arrangements can be made. The ACFE conducts in-person review courses throughout the year. Candidates can take the course and then complete the exam in a proctored environment. The ACFE's calendar reflects available dates.

How is the Certified Fraud Examiner Exam Scored?

To pass the certified fraud examiner exam, takers must pass all four parts with a score of 75% or better. This score is calculated by computer and results are returned to candidates within 3-5 business days of the test. Even review course attendees receive their results in this time frame. All candidates have three chances to pass each portion of the exam.

Note that each of the four parts take two hours to complete, so examinees should set aside a full day for the exam. If a retake is necessary, candidates can request a new test and they will receive a key for the new test within 3-5 business days. Note that the ACFE does not provide review for incorrect responses.

Study Resources and Preparation for the Fraud Examiner Exam

The ACFE provides ample resources for its members to prepare for the certification examination. Perhaps the most common test preparation method is the computer based CFE Exam Prep Course. This course can be taken at the candidate's leisure and thus does not require any special travel or time out of one's schedule. Another option is to purchase the deluxe CFE Exam Prep Toolkit that includes the Prep Course plus other resources such as the Fraud Examiners Manual, a test-prep flashcard app, and the CFE Exam Study Guide.

For those who prefer the structure and focus of an in-person session, the AFCE offers four-day training sessions that includes the opportunity to take the exam with a live proctor. Official AFCE sessions are limited to select cities in the United States. In a recent year, there were three sessions scheduled, one each in Washington, D.C.; New York City; and Austin, TX. Candidates outside of the US can take the course through authorized, independent third parties in major cities throughout the world. Attendees who are eager may take the exam on the first day of the course.

As if that weren't enough, the AFCE offers additional resources that help future CFEs prepare for their exam. The CFE Exam newsletter, for instance, provides study tips, motivators, and other guidance to help ensure a passing score on the professional exam. There are other resources available online, such as the CFE Exam Prep LinkedIn page, which is loaded with tips and tricks. The ACFE also maintains an online community full of discussions related to the test, and more.

1. Difficulty

The CFE examination is not considered to be terribly difficult. However, most in the field do suggest that potential examinees purchase study courses and other materials in advance of their test. While some take as much as a full year to prepare, including four months of intensive study, others follow the guidelines set forth in the study guides and complete their preparation in either 30, 60, or 90 days, depending on their individual need.

Perhaps the more difficult part of attaining CFE credentials is the education and experience portion. That is, aspiring CFEs will need to spend a minimum of four years in college or up to 8 years in the field working in fraud and risk. Consider that some CFEs start out with a two-year associate degree in accounting and then work for four years prior to attaining their credentials.

2. Cost

It is not necessarily cheap to become a CFE. All candidates must first pay dues to become members of the ACFE. To satisfy the experience or educational qualifications, future examiners spend either many thousands on a bachelor's degree or are able to land a job in fraud examination and thus spend their time and energy to qualify. Prior to sitting for the exam, candidates will want to purchase preparation materials or attend a traditional classroom course.

The fees for these options are as follows:

• CFE Exam Prep Course - $796 for members; $995 for non-members

• CFE Exam Review Course (with live instructor) - Fees TBA by the association

• CFE Exam Prep Toolkit – $956 for members; $1,195 for non-members

• CFE Examination Cost – $400 or $300 with purchase of the CFE Exam Prep Course

The Certifications for Fraud Examiners (CCFE) have been created to establish and validate the authenticity of fraud examiners. The Certified Fraud Expert Examiner (CFE) is an international credential given by the International Association of Certification Entities (IACTE). The IACTE is an organization that is dedicated to providing training and certification programs for its members. The International Accreditation Corporation for Certified Public Accountants (ICA-CPAA) is the governing body of the IACTE. The certification can be obtained by passing the national and/or state examinations.

The Certified Fraud Expert Examiner (CFE) certification is designed to ensure fraud examiners are able to perform their jobs without fear of false or inaccurate claims being made to the insurance carrier. Fraud examiners provide a comprehensive analysis of an accident claim, including identifying the likely cause of the incident, the nature of the financial loss, and the most probable causes of similar injuries and deaths in the future. Fraud examiners perform this analysis by collecting the facts surrounding the claim and working with the insurance carrier to gather as many documented facts as possible. The CFE also gathers the results from a review of the medical records to determine if the claim is medically supported and whether the claimant's claims history meets the standards established by the insurance company. If there is reasonable doubt about a claim, the examiner will recommend that the claim be denied. If the claim is approved, the examiner evaluates and analyzes the claims history and data in order to recommend the best course of action to resolve the issue.

Accredited schools for fraud examiners provide a number of options to get certified. Some of these options include: A five-year bachelor's degree, four years of high school education, and a one-year associate's degree program. The courses include information on medical terminology, basic accounting concepts, and case studies. In addition to learning these skills on the job, the courses are used to demonstrate proficiency to a national level board. Upon completion of the coursework, the student will receive a certification and be able to perform his duties under the supervision of licensed examiners.

The Accreditation Council for Financial Training (ACFT) accredits programs in all fifty states, but does not recognize examinations for fraud examiners in the United States. This is because the examination is only required in the United Kingdom. In the United States, however, the exam is recognized as the Standard Certificate of Examination for Insurance Claims Processing, or SCEP. This exam is used by employers, state licensing boards, and other third party payers to establish an individual's ability to perform the exam. In addition to the SCEP, the CFE also takes a national examination, but is not accredited.

The examination is designed to be difficult enough to be recognized by companies that require passing scores to obtain employment. The exam is not designed to give the student an unfair advantage over other exam takers, but is rather a tool to measure the student's abilities against the other examenes.

The exam is divided into two parts, the First Opinion and Second Opinion sections. In the First Opinion section, students are expected to provide a complete and accurate assessment of the incident. They are expected to document the facts surrounding the incident in a written report. They are also expected to determine the cause of the incident, the nature of the accident, the type of loss, and the cause of death, and the manner in which the loss occurred. In the Second Opinion section, students must provide a description of the incident in a concise and accurate report, including all facts of the incident, the cause of death, the cause of the injury, and any other details that are relevant to the incident.

Students who earn certificates in the ACFT Accreditation Board are required to take a continuing education examination every two years, and their certificates expire at the end of five years. The second part of the exam includes a written exam and an oral portion. Students who take the test are required to pass the exam in order to receive their certificate.

Before a certified fraud assessor can become certified, they must complete an extensive educational and training program. This program must include an orientation that covers all aspects of the Certified Fraud Examiner Exam (CFE) and its requirements. Other than the exam, this course must also cover ethics and professionalism, as well as the legal system in the United States.

The audit line of work requires that employees wind up being long-lasting learners, keeping up to day with one of the most up to day guidelines in addition to regulations that control their location. As a result, lots of accounting professionals concentrate on a subfield, such as fraud. Frauds collections you back firms billions of dollars every year, and also as wrongdoers happen smarter, so also should business.

In the late 1980s, the Company of Certified Fraud Inspectors (ACFE) introduced the CFE qualification. Thinking about that after that, scams assessors living throughout the world have actually gained this qualification to learn the most current fraud avoidance finest techniques as well as additionally progress their careers. CFEs have skilled accountancy skills and additionally substantial understanding of simply exactly how crooks attempt to rip off companies.

At the end of the brief write-up, you can check out a meeting with an exercising CFE. Making an expert certification results in far more than feeling pride in your success. Certified fraud examiners enjoy several advantages throughout their professions. They regularly get greater salaries and also boost job security. Businesses seek them out, along with numerous now call for the qualification.

Also, remember that experts with certification along with experience can anticipate also much better advantages. Usually, CFE-certified experts earn 25% greater than their non-certified peers. A certified fraud inspector income can recuperate all expenditures related to certification in less than one year and also still profit those that hold the credential for years to locate.

Currently indulging in an expanding economic situation and likewise record low joblessness costs, specialists need to still plan for the next financial slump by making accreditations or innovative degrees. Certified fraud inspectors can secure themselves versus monetary slumps as well as additional discharges by having a cutting-edge ability that companies worth. Human resources experts can evaluate countless resumes daily.

If you come to be a certified fraud assessor, possible businesses need to take a much more thorough look at your return, raising your opportunities of obtaining the placement. For numerous, task searching takes as much time as a permanent line of work. Consequently, lots of individuals dip right into their monetary cost savings to maintain themselves throughout their task pursues.

As more firms work with certified fraud supervisors, they recognize what these experienced professionals give their firms. Lots of firms currently approve applications just from CFE-certified experts. By acquiring this essential certification, you can put on even more setups, countless of which brag greater starting wages and promotion capacity. Before you take the certified fraud assessor examination, you must comprehend the test in and out.

Certified fraudulence inspectors find, quit, along with preventing deceit. At the workplace, they examine their employers' financial documents for differences and team up with regulations enforcement to bring bad guys to justice. In this last role, they verify throughout trials along with sending evidence. Certified rip-offs examiners that help regional, state, as well as federal governments assess contracts to guarantee that companies do not scam government firms.

The professional fraud manager examination does not utilize screening house windows, so you can attempt it at any sort of time of year. You can take the evaluation from any type of internet-connected computer system. Also if your computer system loses web gain access throughout the assessment, you can still finish the examination along with submitting the outcomes when your computer system reconnects to the internet.

A professional without a bachelor's or associate degree may still obtain acceptance for an accredited deceit examiner certification in detailed circumstances. The next area details this exception in greater information. Specialists with a bachelor's degree need to contend least two years of experience in the rip-offs avoidance area. Acceptable experience contains bookkeeping, criminology, fraud examination, loss prevention, and also regulation.

ACFE gives five elements for every year of experience as well as also 10 points for each year of university. Because of this, credentials candidates with an associate degree have to have 4 years of experience, and also specialists that did not most likely go to college need to have one years of experience. When you acquire the examination, you have thirty days to finish all four areas.

Career & Salary

1. Where Might You Work?

Certified fraud examiners work in a variety of environments. Some may work for federal law enforcement agencies such as the FBI and investigate high-level corruption such as money laundering in casinos, organized crime, and other offenses. Others might work for state or local law enforcement, private-sector corporations, or as private investigators.

Some CFEs work independently as investigators and contract with attorneys or individuals who may feel that they have been defrauded. These professionals can then work from their own offices or even their own homes. Independent CFEs may even be called to audit a company's books and then may spend that time working in the client's offices.

2. Career Outlook

Unfortunately, financial malfeasance seems to be on the rise. However, this is good news for fraud examiners who are seeing growth in their field. The Bureau of Labor Statistics does not specifically address fraud examiners, but the Occupational Information Network (OIN) shows that the field of financial specialists is slated to grow along with the economy, or 4-6% between the years 2018-2028.

The salary figures for financial specialists is likewise healthy with OIN reporting a median salary of $82,000 in 2019. Future CFEs should keep in mind that salary figures often omit other parts of a professional's compensation package. Bonuses, health insurance packages, and travel expense reimbursements may add significantly to one's overall income picture. Furthermore, CFEs who work independently may report their income under different employment classifications, such as consultant.

According to the AFCE, who surveyed 5,678 examiners, their certified professionals earn 31% more than their non-certified peers. This can calculate to total career earnings that exceed non-CFEs by as much as $600,000. AFCE members can request more detailed career reports for specific job descriptions through their website.

3. Jobs

Certified fraud examiners have a wide range of career paths to choose from.

Here is a brief list of the opportunities that open up for credentialed examiners:

• Law Enforcement: Not many accountants get to carry a badge and a revolver, but CFEs do. This career can involve undercover work, witness interviews, providing court testimony, and more law enforcement functions that go past spreadsheets. The BLS lists information for police and detectives, stating that the profession earns just over $65,000 per year.

• Accountants and Auditors: CFEs audit companies and individuals in search of malfeasance where standard accountants are seeking efficiency and to improve the business itself. The BLS shows professionals in this career earning $71,000 per year.

• Financial Examiners: These professionals ensure that their employer remains in compliance with the laws that regulate financial matters. The duties of a CFE with this job title are focused towards avoiding fraud or misdeeds rather than seeking out fraud. The BLS shows an average salary of $81,000 for financial examiners.

• Private Investigation: Often, individuals find that they need a private investigator to discover whether or not they have been defrauded. Divorce attorneys in particular may contract with fraud examiners to determine whether marital assets have been mishandled. The BLS shows this job title earning $50,000 per year.