What Does a Certified Fraud Examiner Do?

Organizations worldwide need to protect their resources and assets from the growing threat of fraud and require experts with the necessary professional experience to do so.

A certified fraud examiner (CFE) has the right training in risk management that enables them to find and prevent fraudulent activities that can lead to significant financial losses, which can majorly impact businesses.

Explore the role and responsibilities of a certified fraud examiner and get answers to some of the most common questions about getting your CFE certification to excel in this important career path.

What Are the Responsibilities of a CFE?

Pursuing a career as a certified fraud examiner provides you with the expertise to uncover fraudulent activities and other financial crimes that can pose a substantial threat to organizations.

A CFE is a valuable asset to any business across many industries, and their responsibilities include:

• they are involved in fraud prevention strategies that can help to reduce the risk of fraud before it occurs
• they are skilled in fraud detection and auditing financial records of companies to identify fraudulent activities
• they assist in gathering information during a fraud investigation to help build and solve legal cases against fraudsters
• they conduct fraud risk assessments that guide organizations in understanding their exposure to different types of fraudulent acts
• they are often called upon as an expert witness to testify during a trial that involves financial crimes

Prerequisites for Becoming a Certified Fraud Examiner

According to the Association of Certified Fraud Examiners (ACFE), which administers the CFE credential, there are a few essential steps to obtain it.

Qualifying Points System

The main requirements to become a CFE include meeting the minimum 40 points set by the ACFE to apply for the exam. You then must have 50 or more points and two years of professional experience to obtain it. The ACFE website has a points system calculator that allows you to add up your education, professional certifications, and work experience to help you determine eligibility. The CFE exam fee is $450.

Education Requirements

The educational requirements for a CFE include holding a bachelor's degree or higher from an accredited college. For instance, West Virginia University offers an online Master of Science degree in forensic and fraud examination that prepares for the CFE exam. Many professional certifications also help you qualify, including:

• Certified Anti-Money Laundering Specialist
• Certified Bookkeeper
• Certified Risk Professional

Work Experience

You need relevant and qualifying fraud-related work experience to become a CFE. This includes employment in the following fields:

• accounting and auditing
• fraud investigation
• criminology and sociology
• law
• loss prevention

ACFE Membership

As a CFE candidate, you need to have an ACFE membership. By becoming an associate member of the ACFE, you agree to adhere to their code of professional ethics. This membership offers many advantages, like access to their job board and opportunities to participate in continuing professional education (CPE) courses, which are necessary for maintaining your credentials.

Career Paths for Certified Fraud Examiners

Holding the CFE credential can enhance your job prospects and potentially help you earn more than those who are not certified. As a CFE, you can pursue several in-demand career paths in both the public and private sectors, as described below.

Internal Auditor

An internal auditor is an excellent job choice for a CFE. They play a crucial role in determining data inaccuracies and assessing the efficiency of a company's risk management processes. Their work includes evaluating company records and financial documents to detect and deter fraudulent activities while ensuring compliance with specific laws and regulations.

Fraud Analyst

A fraud analyst monitors financial transactions to identify fraud and predict future fraudulent behavior. Their role as anti-fraud professionals who follow a certain code of ethics is essential for examining suspicious activity and leveraging various techniques and tools for exposing fraud schemes.

Private Investigator

As a private investigator, you conduct interviews and surveillance to gather evidence. Different types of investigators include computer forensics and loss prevention. Earning the CFE credential gives you the vital skills and knowledge to perform fraud investigations involving white-collar crimes such as money laundering or embezzlement.

FAQs About Certified Fraud Examiners

Find out more about becoming a certified fraud examiner with these most-asked questions.

Is Being a Certified Fraud Examiner Worth It?

Earning the credentials to become a certified fraud examiner is worth it as it provides a versatile and crucial skill set in combatting fraud and financial crimes that influence businesses. It is a high-demand job field that presents many opportunities across varying sectors with high-paying salaries.

How Hard Is the CFE Exam?

The CFE exam can be challenging, but you may not find it difficult with the proper preparation and financial experience. For instance, if you are a CPA, becoming a CFE may be easier for you than for those without an accounting background. Taking a CFE exam prep course is also a popular choice. The exam includes four sections of objective and true or false questions in these areas:

• financial transactions and fraud schemes
• fraud prevention and deterrence
• law
• investigation

When Can I Take the CFE Exam?

You can take the CFE exam when you meet the eligibility requirements determined by a points system. You must have a total of 40 qualifying points to apply for the exam. Upon passing, you need at least 50 points and two years of professional experience in a full-time fraud-related role to earn the CFE credential.