Together, Reducing Fraud Worldwide
Private-Sector Investigators work in the loss prevention department for retail and warehouse security, as independent or agency private investigators, or as internal and external fraud analysts for an organization. Most businesses that possess an inventory of goods in a warehouse or retail environment have a Loss Prevention (LP) department committed to reducing inventory shrinkage and preventing retail larceny. Private Investigators gather facts and collect evidence to conduct investigations on a variety of different crimes. Internal fraud analysis is primarily concerned with monitoring a company’s own employees, whereas external fraud analysis deals with outside fraudsters.
Benefits of the CFE Credential
The CFE credential provides Private-Sector Investigators with the knowledge required to conduct investigations of civil or criminal fraud, or of white-collar crime. Earning the CFE credential gives you an understanding of why people commit fraud and ways to prevent it, the types of fraudulent financial transactions, and interviewing, records and transactions. This knowledge set will place you as a leading expert in the fraud investigation field.The ACFE’s global salary study found that CFEs in Loss Prevention earn a 24.3 percent income premium over their peers without the credential, which demonstrates the value employers place on the credential. The study also provides valuable information and comparisons helpful to all anti-fraud professionals in benchmarking their compensation levels and career growth. The training, fraud resources and continuing education provided by the ACFE will help in any stage of your career path. Refer to the Compensation section below for more information about the compensation ranges for Private-Sector Investigators.
Loss PreventionMost businesses that possess an inventory of goods in a warehouse or retail environment devote significant resources to a Loss Prevention (LP) department. Loss Prevention professionals are committed to reducing inventory shrinkage and preventing retail larceny by both customers and employees. LP professionals are commonly tasked with conducting covert physical and video surveillance, as well as the apprehension of shoplifters. Additionally, they are often involved in the development of security strategies necessary for the protection of a company’s assets and employees.Private InvestigatorPrivate Investigators conduct investigations by gathering evidence through interviews, surveillance and computer research. Types of Private Investigators include computer forensic, financial, legal, corporate and loss prevention. Most states require a license to become a Private Investigator, and you may be required to obtain a city license in some states.Internal Fraud AnalystMost medium- to large-sized companies employ Internal Fraud Analysts. These analysts are tasked with identifying fraud perpetrated by members of the company’s employee base. Internal Fraud Analysts routinely take action on employee tips, exception reports, and irregularities found in compliance and sales audits. The Internal Fraud Analyst is responsible for gathering evidence, writing detailed reports and interviewing employees. Internal fraud departments are often responsible for developing best practices and educating employees about fraud awareness. External Fraud AnalystWhereas internal fraud analysis is primarily concerned with monitoring a company’s own employees, external fraud analysis deals with outside fraudsters, many of whom conduct schemes in collusion with current or former employees. External fraud commonly occurs with vendors and subcontractors running various billing or sales schemes against a company. External Fraud Analysts also investigate instances of pretexting and social engineering intended to steal sensitive information. Additionally, External Fraud Analysts are sometimes involved in examining various forms of cyber crime, including phishing or hacking attempts.
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For most Private-Sector Fraud Investigators, a high school education is required. Some college education or a bachelor’s degree in law enforcement or criminal justice is a plus and sometimes required. Private Investigators learn most of their skills on the job and may be required to obtain a license. For individuals in loss prevention and internal and external fraud analysis, a bachelor’s degree is usually preferred.
Knowledge, Skills and Abilities
It is important to plan and conduct an honest self-assessment of your knowledge, skills and abilities. In particular, employers are looking for:
Bribery and corruption
Credit card fraud
Attention to detail
Functions in stressful situations
Alert to surroundings
Understands associated risks
Strong judge of character
Below are compensation ranges for Loss Prevention professionals taken from the 2010/2011 Compensation Guide for Anti-Fraud Professionals:
Based on the Occupational Outlook Handbook by the Bureau of Labor Statistics, the median annual wage for private detectives and investigators was $42,870 in 2010.
Cyber Securities Laws
Directorate of Defense Trade Controls
Fuld & Company’s Internet Intelligence Index
High Technology Crime Investigation Association
Internet Center for Corruption Research
Internet Crime Complaint Center
Money Laundering and Terrorist Financing
National White Collar Crime Center
U.S. Commodity Futures Trading Commission
U.S. Department of Homeland Security
U.S. Department of Justice
U.S. Department of Justice—Computer Crime and Intellectual Property Section
U.S. Federal Communications Commission
U.S. Federal Inspectors General
United Nations Crime & Justice Information Network (UNCJIN)
Vital Records Database
Governance, Risk Management and Compliance
Risk Management Professional
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