CFE Exam moves to Prometric testing platform and the ACFE COVID-19 Benchmarking Report

CFE Exam moves to Prometric’s testing platform

Prospective Certified Fraud Examiners can now take the CFE Exam through a new platform — part of the ACFE’s efforts to improve exam security and make the testing process as accessible and trouble-free as possible for its members across the globe.

The system, which the ACFE launched on July 12 in partnership with Prometric, comes with new technology features for CFE hopefuls, who now have the options to take the exam remotely with the assistance of live proctors or at one of Prometric’s testing centers around the world. The switch to Prometric also means that in-person and remote test-takers will be subject to strict security checks and protocols throughout the process.

“This will only enhance exam security and make for a much more consistent experience all over the world,” says ACFE Board of Regents Chair Kenneth R. Dieffenbach, CFE.

Making the switch

The ACFE had been using Examity’s remote-proctoring service for the CFE Exam since January 2020. But as the COVID-19 pandemic stretched into spring, test-takers needed access to comprehensive technical support before, during and after the exam — a service that an automated-only system couldn’t provide. “We needed more hands-on technical assistance,” says CFE Program Manager Amy Scott, CFE.

Prometric’s live-proctoring system provides remote test-takers live onboarding support and interaction with proctors. “Having somebody there elevates security and customer experience,” says ACFE Research Director Andi McNeal, CFE, CPA.

Prometric collaborated with the ACFE on a job analysis survey in 2019 to identify the skills and knowledge that fraud examiners need to effectively perform their jobs. The ACFE used the results of the survey to update the CFE Exam to better reflect the needs of today’s professional fraud examiners. Prometric administers many well-known credentialing exams, such as the CPA licensing exam.

Following the Prometric protocol

Prometric’s security procedures are thorough. During the remote exam, a proctor conducts a full scan of a test-taker’s room, including their desk, chair and floor, as well as their arms, hands and pockets. Prometric prohibits jewelry, notes or any nearby electronic devices, and it might ask test-takers to remove or cover up any items or clutter in the room.

The ACFE recommends that test-takers carve out some time before their exam to clean their testing areas and remove any items, such as books and papers, from their rooms. These security protocols will “reinforce and enhance the reputation of the CFE credential,” says Dieffenbach.

Accessibility and flexibility

Each prospective CFE can take the exam from their home as long as they have a reliable internet connection, an updated computer operating system and web browser, and microphone and webcam. Those who can’t fulfill these requirements can take the CFE Exam from one of Prometric’s 8,000 testing centers in more than 180 countries.

Scott advises test-takers to ponder where they want to take the exam and to understand the security checks involved in the remote option. She said that early preparation and familiarity with the Prometric system are keys to having the smoothest possible exam experience. “Schedule the exam ahead of time and early enough — at least 30 days out,” Scott says.

McNeal adds that communicating with the ACFE and asking for help early in the process can go a long way to ensure that future CFEs will have successful exam experiences. “The testing experience can be stressful, but the ACFE is here to help you. So, reach out to us and let us know what you need,” she says.

(For more information about how to register for the CFE Exam and the requirements for taking the exam, see CFE Exam FAQs, ACFE.com/examfaqs.)

Organizations brace for another uptick in fraud

Organizations are gearing up for yet another jump in fraudulent activity, particularly in cyberspace, after an already turbulent year that saw scammers take full advantage of the vulnerabilities created by the COVID-19 pandemic, according to the ACFE’s latest benchmarking report.

The ACFE, in collaboration with Grant Thornton, surveyed anti-fraud professionals across the globe to garner their views on the current and expected effects of the COVID-19 pandemic on the landscape for fraud. (See The Next Normal: Preparing for a Post-Pandemic Fraud Landscape, ACFE.com/covidreport.)

The report found that 51% of organizations have uncovered more fraud since the onset of the health crisis last year. And that trend is expected to continue with 71% of those surveyed expecting the level of fraud impacting their organizations to increase over the next year.

While the world is slowly beginning to put the worst of the pandemic behind it, changes in how businesses operate, such as moving to remote work and consumers’ shift to online buying following the health crisis, are expected to create significant fraud risks.

More than two-thirds of respondents said both these factors have had a significant or moderate influence on their organization’s fraud risk landscape and/or fraud risk management programs.

"Our studies show that changes in company operations, control environments and investigation processes will continue to present hurdles for anti-fraud programs for the foreseeable future,” ACFE President and CEO Bruce Dorris, J.D., CFE, CPA, said during the 32nd Annual ACFE Global Fraud Conference. “However, we also see encouraging signs of optimism and progress."

Indeed, organizations have been proactively preparing themselves for this post-pandemic landscape. More than 80% of those surveyed have already implemented one or more changes to their anti-fraud programs in response to the pandemic.

Cyber risks ahead

While survey respondents expect to see growth in fraud risks in most categories, cyberfraud and social engineering are the risk categories most expected to increase, with more than 80% of respondents seeing growth in these two areas. Just over 70% of respondents said identity crime, as well as unemployment and payment fraud, would see significant or slight increases. In contrast, 47% of those surveyed expected an increase in financial statement fraud, while over 50% anticipate a jump in employee embezzlement and bribery and corruption.

Perhaps reflecting increased cyberfraud risks, 38% of organizations surveyed increased budgets for anti-fraud technology in fiscal year 2021 compared to pre-pandemic years. That compares to 32% for overall anti-fraud budgets, 29% for fraud-related consultants or other external resources, 27% for anti-fraud training and professional development, 26% for anti-fraud staffing and 14% for travel for anti-fraud staff.

That emphasis on anti-fraud technology will continue into next year. When asked about expected changes to anti-fraud budgets for fiscal year 2022 compared to 2021, 43% of respondents indicated that their organizations expect to increase budgets for anti-fraud technology over that period.

“The reality is that our increased dependence on technology is here to stay. These shifts come with challenges and with opportunities,” said Dorris.

While respondents said many of the challenges they faced during the pandemic would ease, technological challenges are projected to grow slightly post-pandemic. Forty seven percent of respondents anticipate technological challenges versus 44% who see technology as a current challenge.

At present, 60% of respondents thought the top challenge has been adapting to changes in the investigative process, whether it’s gaining access to evidence or conducting remote interviews or simply the inability to travel.

When asked whether the pandemic revealed any needed improvements in anti-fraud programs, more than half pointed to enhanced fraud risk awareness and increased collaboration across the organization.

“These findings emphasize that even though we have accomplished much over the last year … [and] we are seeing positive shifts in the overall landscape, we cannot yet let our guard down,” said Dorris. “We must remain vigilant. The heightened risk of fraud is not going away any time soon.”

Jennifer Liebman is assistant editor of Fraud Magazine. Contact her at jliebman@ACFE.com.