What is a Certified Fraud Examiner (CFE)
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Summary:
The Certified Fraud Examiner (CFE) certification is offered by the Association of Certified Fraud Examiners (ACFE) to certify those with the skills and knowledge required to detect and prevent fraudulent activity. CFEs must have a bachelor’s degree and at least two years of experience in fields like accounting, auditing, law, or loss prevention and must pass a certification exam. They are required to maintain their knowledge through continuing education and abide by a code of ethics. Employment of financial examiners, including CFEs, is expected to grow by 18% from 2020 to 2030. Becoming a CFE can lead to a 34% increase in salary compared to non-certified colleagues, according to the ACFE. CFEs detect, investigate, and resolve fraud cases and have a range of career options available to them, from forensic accountants to chief audit executives.
The Certified Fraud Examiner (CFE) certification is offered to those with the skills and knowledge needed to detect and prevent fraudulent activity.
CFEs are required to maintain their expertise through continuing education and are certified by the Association of Certified Fraud Examiners (ACFE).
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Get to know the Certified Fraud Examiner (CFE) certificate
To qualify for the certification, candidates must have a bachelor’s degree and at least two years of experience in fields such as auditing, loss prevention, law, and accounting.
The certification is based on a points system, and applicants must have 50 points and pass a certification exam. CFEs are held to a high ethical standard and are required to abide by a code of ethics.
Notable CFEs include Harry Markopolos, the whistleblower who warned the SEC about Bernie Madoff’s Ponzi scheme, and David P. Weber, the former SEC assistant inspector general who called out personal relationships that tainted the SEC investigation.
To become a Certified Fraud Examiner, candidates must meet five criteria:
- They must be an Associate Member of the ACFE, and have at least 40 points to take the CFE Exam.
- Have a minimum of 50 points to be certified.
- Possess two years of professional experience in fraud detection or deterrence.
- Pass the CFE Exam.
- Agree to abide by the ACFE’s bylaws and Code of Professional Ethics.
The Certified Fraud Examiner (CFE) exam is broken down into four sections: Financial Transactions and Fraud Schemes, Law, Investigation, and Fraud Prevention and Deterrence. Test takers are given two hours to complete each section but can take each part separately within 60 days. According to the ACFE, passing the exam and becoming a CFE can lead to a 34% increase in salary compared to non-certified colleagues.
Maintaining certification credentials
To keep their CFE credentials, certified fraud examiners must continue their education by completing Continuing Professional Education (CPE) credits. A minimum of 20 CPE credits is required each year, with 10 of them being related to the detection and deterrence of fraud, and two directly related to ethics. If a CFE cannot meet their deadline, the ACFE allows for an extension.
Fun Fact: Did you know that the first financial fraud in the United States was prosecuted in 1792? Alexander Hamilton, the secretary of the Treasury, took action to prevent a bond market crash after William Duer, the assistant secretary of the Treasury, alerted his friends about classified information before unveiling it to the public. This would lead to the formation of the New York Stock Exchange through the Buttonwood Agreement.
What are some potential CFE career options?
As a Certified Fraud Examiner (CFE), you will have a range of career options available to you, from forensic accountants to chief audit executives.
The demand for CFEs is growing as more and more organizations realize the staggering cost of occupational fraud, which the ACFE estimates at over $4.7 trillion a year worldwide.
With new regulations and the development of the Consumer Financial Protection Bureau (CFPB), the employment of fraud examiners is projected to increase by 18% from 2020 to 2030, according to the Bureau of Labor Statistics.
What do CFEs do for work?
A Certified Fraud Examiner (CFE) is a professional who detects, investigates, and resolves fraud cases.
What are the CFE exam costs>
The cost to take the CFE Exam is $450, but by purchasing the CFE Exam Prep Course the fee can be reduced to $350.
What to do if you fail a section of the exam?
If you fail a section of the exam, you can still retake it for a fee of $100 per failed section, but you must pass each section within three attempts.
Key takeaways
- A Certified Fraud Examiner (CFE) is a certification offered by the world’s largest anti-fraud organization.
- Offered to fraud examiners with at least two years of experience and 50 points based on education and professional affiliations.
- To obtain the CFE designation, candidates must pass a certification exam. CFEs must complete continuing education to maintain the credential.
- Employment of financial examiners, including CFEs, is expected to grow 18% from 2020 to 2030 according to the Bureau of Labor Statistics.
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