Certified Fraud Examiner (CFE) Definition

What Is a Licensed Fraud Examiner (CFE)?

A Licensed Fraud Examiner (CFE) is an expert certification obtainable to fraud examiners. CFEs are topic to periodic persevering with skilled training necessities (CPE) in the identical method as CPAs.

The CFE designation is issued by the Affiliation of Licensed Fraud Examiners (ACFE), the world’s largest anti-fraud group, primarily based in Austin, Texas. 

Understanding the Licensed Fraud Examiner (CFE) Certificates

Licensed fraud examiners are required to have a bachelor’s diploma (or equal)—no particular subject is required—and at the least two years of “skilled expertise in a subject associated to the detection or deterrence of fraud.” Acceptable fields embrace auditing, loss prevention, legislation, and accounting. Qualifying is completed in response to a factors system that awards credit score for training, skilled affiliations, and expertise. Candidates will need to have 50 factors and cross a certification examination to obtain the CFE designation. 

CFEs are topic to a code of ethics. For instance, Harry Markopolos, the skin investigator who repeatedly warned the Securities and Trade Fee (SEC) about Bernie Madoff’s Ponzi scheme—to no avail—was a CFE. So is whistleblower David P. Weber, the previous SEC assistant inspector common who acknowledged that former SEC Inspector Common David Kotz had private relationships that tainted the SEC investigation of that scandal.

Steps to Turning into a Licensed Fraud Examiner

So as to qualify, candidates should additionally meet the next 5 standards:

• should be an Affiliate Member of the ACFE
• have a minimal of 40 factors within the eligibility factors system to take the CFE Examination and a minimal of fifty factors to be licensed
• have at the least two years {of professional} expertise in a subject associated to the detection or deterrence of fraud
• cross the CFE Examination
• conform to abide by the ACFE’s bylaws and Code of Skilled Ethics

The CFE Examination

The CFE Examination is taken on a proctored pc system, and consists of 4 sections: Monetary Transactions and Fraud Schemes, Regulation, Investigation and Fraud Prevention and Deterrence.

Take a look at takers have two hours to finish every part of the CFE Examination. Though the entire examination time is due to this fact eight hours, every part of the examination may be taken individually so long as all sections are accomplished inside 60 days.

 Sustaining Your CFE Credential

CFEs are additionally required to finish persevering with training. Based on the ACFE web site, “Licensed Fraud Examiners (CFEs) want to remain present within the career by finishing Persevering with Skilled Training (CPE). CFEs should receive a minimal of 20 CPE credit annually; at the least 10 of those should relate on to the detection and deterrence of fraud and two should relate on to ethics.” The ACFE will enable an extension if a CFE is unable to satisfy their deadline.

CFE Profession Outlook

CFEs have a variety of profession choices. Typical jobs embrace forensic accountant, inner/exterior auditor, compliance officer, state or personal investigator, and legislation enforcement. A CFE can transfer into an govt place, corresponding to a particular agent, an inspector common, a chief compliance officer, a chief danger officer, or a chief audit govt. 

The ACFE estimates that occupational fraud value organizations worldwide over $4.7 trillion a 12 months. New and altering rules—and the event of the Client Monetary Safety Bureau (CFPB)—have elevated the employment of fraud examiners. The Bureau of Labor Statistics initiatives the employment of economic examiners, which entails the kind of work completed by CFEs (“guarantee compliance with legal guidelines that govern establishments dealing with financial transactions.”), to extend 18% from 2020 to 2030.