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The Certified
Fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
Examiner (CFE) is a credential awarded by the ''
Association of Certified Fraud Examiners The Association of Certified Fraud Examiners (ACFE) is a professional organization of fraud examiners. Its activities include producing fraud information, tools and training. Based in Austin, Texas, the ACFE was founded in 1988 by Joseph T. Wells ...
'' (ACFE) since 1989. The ACFE
association Association may refer to: *Club (organization), an association of two or more people united by a common interest or goal *Trade association, an organization founded and funded by businesses that operate in a specific industry *Voluntary associatio ...
is a provider of anti-fraud training and education. Founded in 1988 by Dr. Joseph T Wells. The ACFE established and administers the Certified Fraud Examiner (CFE) credential. To become a Certified Fraud Examiner (CFE), one must meet the following requirements: * Be an Associate Member of the ACFE in good standing * Meet minimum academic and professional requirements (undergraduate degree and professional experience (Note: a combination of graduate or post-graduate education and experience can be used to increase eligibility, however most importantly a candidate must score 40 points or above based on eligibility criteria). * Be of high
moral character Moral character or character (derived from charaktêr) is an analysis of an individual's steady moral qualities. The concept of ''character'' can express a variety of attributes, including the presence or lack of virtues such as empathy, coura ...
* Agree to abide by the Bylaws and Code of Professional Ethics of the Association of Certified Fraud Examiners * Pass the CFE Examination


Academic requirements

Generally, applicants for CFE certification must have a minimum of a
bachelor's degree A bachelor's degree (from Middle Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to six ...
or equivalent from an institution of
higher education Higher education is tertiary education leading to award of an academic degree. Higher education, also called post-secondary education, third-level or tertiary education, is an optional final stage of formal learning that occurs after completi ...
. Two years of professional experience related to fraud can be substituted for each year of college.


Professional requirements

At the time of certification, at least two years of professional experience in a field either directly or indirectly related to the detection or deterrence of fraud is required. The ACFE recognizes the following areas as qualified professional experience: *
Accounting Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "languag ...
and
audit An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...
ing *
Criminology Criminology (from Latin , "accusation", and Ancient Greek , ''-logia'', from λόγος ''logos'' meaning: "word, reason") is the study of crime and deviant behaviour. Criminology is an interdisciplinary field in both the behavioural and so ...
and
sociology Sociology is a social science that focuses on society, human social behavior, patterns of Interpersonal ties, social relationships, social interaction, and aspects of culture associated with everyday life. It uses various methods of Empirical ...
(sociology is acceptable only if it relates to fraud.) * Fraud investigation *
Loss prevention Retail loss prevention (also known as Retail asset protection) is a set of practices employed by retail companies to preserve profit. Profit preservation is any business activity specifically designed to reduce preventable losses. A preventable ...
(experience as a
security guard A security guard (also known as a security inspector, security officer, or protective agent) is a person employed by a government or private party to protect the employing party's assets (property, people, equipment, money, etc.) from a variety ...
or equivalent is not acceptable) *
Law Law is a set of rules that are created and are enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise definition a matter of longstanding debate. It has been vario ...
relating to fraud Other experience can qualify, but must be reviewed for applicability.


Moral character

The ACFE will require references attesting to one's character before granting the certificate.


Adhere to the Code of Ethics

Per the ACFE website, the code of ethics states that a Certified Fraud Examiner shall: * Demonstrate a commitment to professionalism and diligence in his or her duties. * Not engage in any illegal or unethical conduct, or any activity which constitutes a
conflict of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations i ...
. * Exhibit the highest level of integrity in the performance of all professional assignments and will accept only assignments for which there is reasonable expectation that the assignment will be completed with professional competence. * Comply with lawful
orders Order, ORDER or Orders may refer to: * Categorization, the process in which ideas and objects are recognized, differentiated, and understood * Heterarchy, a system of organization wherein the elements have the potential to be ranked a number of d ...
of the
court A court is any person or institution, often as a government institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance ...
s and testify to matters truthfully and without
bias Bias is a disproportionate weight ''in favor of'' or ''against'' an idea or thing, usually in a way that is closed-minded, prejudicial, or unfair. Biases can be innate or learned. People may develop biases for or against an individual, a group, ...
or prejudice. * Obtain
evidence Evidence for a proposition is what supports this proposition. It is usually understood as an indication that the supported proposition is true. What role evidence plays and how it is conceived varies from field to field. In epistemology, evidenc ...
or other documentation to establish a reasonable basis for any opinion rendered. No opinion shall be expressed regarding the guilt or innocence of any person or party. * Not reveal any confidential information without proper authorization. * Reveal all pertinent material matters discovered during the course of an examination. * Continually strive to increase the competence and effectiveness of professional services performed under his or her direction.


Examination

The CFE Exam consists of 400 questions divided into four sections (100 questions each). Each exam section has a time limit of two hours with an optional five minute break. All four sections must be completed within a 60 days window. The CFE Exam has the following four sections: *Fraud Prevention and Deterrence - Tests your knowledge of why people commit fraud and what can be done to prevent it. Topics include: Auditors' Fraud-Related Responsibilities, Corporate Governance, Ethics for Fraud Examiners, Fraud Prevention Programs, Fraud Risk Assessment, Fraud Risk Management, Management's Fraud-Related Responsibilities, Understanding Criminal Behavior,
White-Collar Crime The term "white-collar crime" refers to financially motivated, nonviolent or non-directly violent crime committed by individuals, businesses and government professionals. It was first defined by the sociologist Edwin Sutherland in 1939 as "a ...
. *Financial Transactions and Fraud Schemes - This section tests your knowledge of the types of fraudulent financial transactions incurred in accounting records. Topics include: Accounting Concepts, Bribery and Corruption, Cash Receipts Schemes, Computer and Internet Fraud, Consumer Fraud, Contract and Procurement Fraud, Financial Institution Fraud, Financial Statement Fraud, Fraudulent Disbursements, Health Care Fraud, Identity Theft, Insurance Fraud, Inventory and Other Assets, Payment Fraud, Theft of Data and Intellectual Property. *Investigation - Topics include: Analyzing Documents, Covert Examinations, Data Analysis and Reporting Tools, Digital Forensics, Interview Theory and Application, Interviewing Suspects and Signed Statements, Planning and Conducting a Fraud Examination, Report Writing, Sources of Information, Tracing Illicit Transactions. *Law - This section ensures that you are familiar with the many legal ramifications of conducting fraud examinations, including criminal and civil law, rules of evidence, rights of the accused and accuser and expert witness matters. Topics include: Bankruptcy (Insolvency) Fraud, Basic Principles of Evidence, Individual Rights During Examinations, Law Related to Fraud, Money Laundering, Overview of the Legal System, Securities Fraud, Tax Fraud, Testifying, The Civil Justice System, The Criminal Justice System.


Notable CFEs

* Cynthia Cooper, whistleblower of the
WorldCom MCI, Inc. (subsequently Worldcom and MCI WorldCom) was a telecommunications company. For a time, it was the second largest long-distance telephone company in the United States, after AT&T. Worldcom grew largely by acquiring other telecommunic ...
accounting scandal *
Joseph Gutheinz Joseph Richard Gutheinz (born August 13, 1955) is an American attorney, college instructor, commissioner, writer, and former Army intelligence officer, Army aviator, and Federal law enforcement officer. He is known as the founder of the "Moon Ro ...
, Omniplan Task Force Leader, largest count conviction in NASA history *
Harry Markopolos Harry M. Markopolos (born October 22, 1956) is an American former securities industry executive and a forensic accounting and financial fraud investigator. From 1999 to 2008, Markopolos uncovered evidence that suggested that Bernie Madoff's wea ...
, whistleblower of the
Bernard Madoff Bernard Lawrence Madoff ( ; April 29, 1938April 14, 2021) was an American fraudster and financier who was the admitted mastermind of the largest Ponzi scheme in history, worth about $64.8 billion. He was at one time chairman of the NASDAQ s ...
scandal *
David P. Weber David Paul Weber is an American criminalist, and the former Assistant Inspector General for Investigations at the U.S. Securities and Exchange Commission (SEC). He is the Principal Investigator of a $2.6 million grant by the U.S. Department of H ...
, former U.S.
Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
(SEC) Chief Investigator, and whistleblower. *
Joseph T. Wells The Association of Certified Fraud Examiners (ACFE) is a professional organization of fraud examiners. Its activities include producing fraud information, tools and training. Based in Austin, Texas, the ACFE was founded in 1988 by Joseph T. Wells ...
, founder and chairman of the
Association of Certified Fraud Examiners The Association of Certified Fraud Examiners (ACFE) is a professional organization of fraud examiners. Its activities include producing fraud information, tools and training. Based in Austin, Texas, the ACFE was founded in 1988 by Joseph T. Wells ...


References

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External links


Association of Certified Fraud Examiners
Accounting qualifications Professional titles and certifications Fraud