Investing in the fight against fraud

The ACFE Research Institute (ARI) is bridging the gap between academia and professional practice. By funding cutting-edge projects that advance best practices in fraud prevention and detection, the ARI’s approach inspires continuous learning and innovation in the anti-fraud profession.

In 2016, Margaret Christ, Ph.D., CIA, and Tina Carpenter, Ph.D., CPA, wanted to examine how public accounting firms and their clients were implementing data analytics. Although data has transformed the accounting field in the past decade, there was a disconnect in professional practice. “Despite the many benefits of data analytics being frequently touted, we often heard from our contacts in practice that they weren’t using the available technologies and techniques as much as they could. So, we set out to investigate why this was the case,” they tell Fraud Magazine.

Christ and Carpenter are both professors at the J.M. Tull School of Accounting at the University of Georgia. Christ is the accounting school’s director, and Carpenter is the school’s Meigs Distinguished Professor. To accomplish their goal, they’d need funding and guidance from anti-fraud professionals. They turned to the Association of Certified Fraud Examiners (ACFE) Foundation and applied for a grant from the ACFE Research Institute (ARI). After submitting their research proposal, titled “The Impact of Big Data and Data Analytics on Finding Fraud,” and attending an ARI meeting during which they presented their project pitch, Christ and Carpenter received a $10,000 grant from the ARI. (The research team also received a $10,000 ARI grant in 2015 for their proposal, “A Matter of Time: Reducing Constraints and Empowering Auditors to Find Fraud.”) The accounting professors say the funding was critical to the completion of what ended up being a four-year project. They add that they’re grateful for ACFE members’ financial contributions to the ACFE Foundation, which “enable us to pursue meaningful, high-impact research that advances both theory and practice.” [See “Support the ARI” at the end of this article.]

Along with financial support, they had access to a panel of practitioners who helped them identify research participants and provided meaningful input throughout the project. “Being able to speak with ARI board members and staff was priceless to ensure that our research was answering questions that were interesting and important to both academic research and practice,” they say.

With much-needed funding and professional input, Christ and Carpenter began interviewing audit partners and their clients, including forensic specialists and accounting regulators, to gather their perspectives on the evolving role of analytics in professional practice. “We found that there were competing pressures and growing tensions — disagreements about fees, lack of regulatory guidance and uncertainty about the appropriateness of providing client insights — that were slowing the diffusion of data analytics throughout the audit process,” they tell Fraud Magazine.

They compiled their years of analysis, writing and revisions to create “The Data Analytics Journey: Interactions Among Auditors, Managers, Regulation and Technology,” published in 2021 in the journal Contemporary Accounting Research. Christ and Carpenter co-authored the paper with Ashley Austin and Christine Nielson, who were Ph.D. students when the project began. This year, the American Accounting Association recognized the paper for its “significant contribution to the practice of public accountancy” by awarding it the prestigious Deloitte Foundation Wildman Medal Award. “We were very happy and deeply honored to be recognized with this esteemed award,” Carpenter says.

According to Christ and Carpenter, their paper’s findings contribute to fraud prevention and detection by highlighting how data analytics can enhance auditors’ and managers’ ability to identify anomalies, unusual transactions and patterns that may indicate fraudulent activity. Mary Breslin, CFE, CIA, chair of the ACFE Foundation Board of Directors, says the award-winning paper funded by the ARI demonstrates its “significant and measurable impact … on the anti-fraud profession.” By funding real-world, actionable research that’s helping professionals detect, prevent and respond to fraud more effectively, Breslin says the ARI “supports timely and relevant research to address challenges organizations and individuals are facing currently, helping to bridge the gap between academia and professional practice.”

ARI’s impact

Kip Holderness, Ph.D., CFE, CPA, an accounting professor at West Virginia University, received several grants from the ARI to fund his research before becoming ARI’s director of research in 2020. He describes his role as “a lot of fun,” adding that he enjoys facilitating research that makes “anti-fraud professionals more effective in the field.” By funding this type of research, Holderness says, the ACFE has positioned itself as a thought leader with influence in regulation, governance and anti-fraud practice.

“The ACFE is at the forefront of shaping the direction of fraud research,” Holderness tells Fraud Magazine. “In academia, there are few researchers with practical fraud experience, and in the professional world, many skilled practitioners lack the funding, research expertise or academic connections to carry out rigorous studies. The ARI brings these groups together. It’s a powerful combination of resources and expertise that produces research with real-world impact that anti-fraud professionals can immediately apply.”

By serving as a central repository of fraud-related knowledge, the ARI promotes the exchange of ideas about fraud prevention, deterrence and detection. With a focus on funding research and education on the prevention of fraud, corruption and other white-collar crime, the ARI works with academics and industry experts worldwide. The resulting collaboration leads to research projects that explore the latest fraud trends and developments affecting individuals, businesses and governments.

Eric Miles, CFE, CPA/CFF, who joined the ACFE Foundation Board of Directors in January, says he’s benefited professionally from ARI-funded research, which he credits with contributing “to a deeper understanding of fraud risks,” adding that “having solid, research-backed insights has been a real asset in helping organizations take fraud risk seriously.”

Breslin acknowledges the substantial role ARI-funded research plays in the understanding that businesses and governments have of who commits fraud and why and how it’s committed. Organizations can get actionable insights and implement practical approaches from the research conducted by grant recipients, she says. “Those are shared with the fraud-fighting community through training opportunities, conferences and Fraud Magazine.”

In addition, Miles says that ARI has helped educate the public on effective methods of fraud identification and deterrence by making practical, evidence-based methods accessible. “By funding and publishing credible research, the ARI supports awareness, informs policy and strengthens the overall effectiveness of anti-fraud efforts,” he explains.

Research that matters to anti-fraud professionals

When awarding grants to researchers, Holderness says the ARI selection committee, made up of five members who work in the anti-fraud industry, as well as the government and education sectors, determines whether a proposed project will improve the ability of businesses and government to combat fraud and educate the public on effective identification and deterrence. In addition to awarding grant funding, the ARI provides limited access to two databases: the Securities and Exchange Commission (SEC) litigation release database, which includes approximately 1,100 financial statement frauds through 2015, and data observations behind the ACFE’s editions of Report to the Nations from 2004 to 2024.

Each spring the ACFE Foundation calls for research proposals. The ARI’s proposal review and selection process follows these steps:

• Each research proposal undergoes a “desk review” in which the ARI director of research evaluates the proposed study and determines which proposals are most in line with ARI research priorities and objectives.
• Selected researchers are invited to attend an ARI meeting and present their research proposals.
• The ARI selection committee determines approval of grant awards.
• Grant recipients are expected to make substantial progress on their projects before the next ARI annual meeting and to provide an annual progress report until completion of the project.
• Upon completion of their study, recipients present their final results at an ARI meeting. They also provide a brief practitioner-focused abstract explaining their research and findings to be posted on the ARI website.
• Grant recipients with published or publicly presented research findings must acknowledge the ARI’s support.

Proposals for consideration next year will be accepted beginning Jan. 1, 2026. The deadline for submissions is March 1, 2026. The ARI website details guidelines for grant proposals and the selection and review process. Grant applicants must:

• Submit a completed, one-page project proposal form.
• Request either monetary support or data access, not both.
• Include a budget with supporting calculations that reflect the total amount requested.
• Attach a research proposal overview that addresses the research question and why it’s important to practicing professionals.

Christ and Carpenter describe the ARI proposal process as “clear and well executed,” adding that they “really valued the opportunity to present our research project to practitioners, who … helped us shape our research design so that it would provide meaningful insights for practitioners.”

After receiving all project proposals, Holderness reviews them and determines their feasibility. In 2024, the ARI received 13 proposals. This year, the ARI received more than triple that amount with 40 proposals to consider. Although he expects some variation in the volume of proposals from year to year, Holderness says he’s “never seen that big of a jump.” He thinks the reason for the tremendous response this year may be partly due to “increased awareness of ARI support, as well as the loss of [U.S.] government funding that has really cut into research budgets.”

After screening and ranking the proposals, Holderness contacts the prospective candidates who’ve made the initial cut. Holderness coaches the finalists before they present to the review committee. “I tell them, ‘You’re not going to be presenting to the academic group you’re usually presenting to. You need to focus on why your research matters to the anti-fraud professionals doing this work every day,’” he explains.

Once the finalists are prepped, they pitch their projects to the selection committee. This year, Holderness had the challenging task of whittling 40 research proposals down to 14 for the selection committee to consider. Grant recipients can receive a maximum of $15,000. With a budget of $75,000 this year, the ARI funded six research projects, up from three in 2024.

Inspiring future fraud examiners

Breslin calls the Justice for Fraud Victims Project (JFVP) a prime example of an ARI-funded project that’s facilitated the fraud-fighting community’s ability to share knowledge and experience on a scale while cultivating the next generation of fraud fighters. The JFVP began in 2010 at Gonzaga University in Spokane, Washington, as a collaborative effort to support victims of financial fraud who couldn’t afford forensic services. The project united students, faculty, law enforcement and Certified Fraud Examiners (CFEs) to investigate fraud cases and provide pro bono forensic accounting. Today, eight U.S. colleges and universities participate in the JFVP. David Glodstein, DBA, CFE, CPA, vice president of the JFVP, says five more plan to launch programs in the coming academic year.

Marie Rice, Ph.D., CFE, CIA, president of the JFVP, says she and Glodstein had a positive experience working with the ARI. “The board members were intrigued with how students who work on cases through the JFVP will be the next generation of fraud fighters. They were supportive of promoting the JFVP to the various ACFE chapters,” she says.

Rice and Glodstein credit the $14,150 grant they received from the ARI in 2024 with fortifying the JFVP’s substantial impact on fraud victim support and advocacy. Rice and Glodstein developed their initial proposal, titled “Best Practices Guide for the Justice for Fraud Victims Project,” based on their dedication to advancing the JFVP initiative by equipping schools with the tools and support they need to be successful. “The guide empowers more schools and CFEs to launch JFVP initiatives, bolstering community support and expanding forensic capacity nationwide,” Breslin says.

Given their favorable response from the ARI board and the ACFE leadership team, Rice says she and Glodstein decided to submit a second proposal titled “Facilitating Collaboration Between Current and Future Anti-Fraud Professionals Through the JFVP.” They received a $10,000 ARI grant for their second research project, which they’re still working on.

“Support from the ARI and the ACFE has played a key role in raising awareness of and contributing to the growth of the JFVP. Thanks to this funding and the ACFE’s support, our research has reached a wider audience, including ACFE chapters and attendees at global conferences,” Glodstein says. “These connections have generated contacts from additional schools and chapter members who are interested in adopting or collaborating with the JFVP.” They describe the ARI funding as “instrumental” in expanding visibility, building new partnerships and increasing demand for programming.

JFVP schools have played a meaningful role in helping fraud victims while inspiring students to pursue careers in fraud examination. “The project has made valuable contributions by supporting community justice efforts, strengthening recruitment into the profession and promoting ethical fraud investigation practices,” Rice explains. Looking ahead, the JFVP strives to expand to every U.S. state, assist more financially vulnerable victims, and spark national interest from new schools and ACFE chapters.

Staying ahead of fraud

Because fraud is constantly evolving, Miles emphasizes the importance of proactive fraud prevention and detection that’s rooted in continuous learning and innovation. By equipping anti-fraud professionals with credible, timely insights that can lead to effective strategies in the fight against fraud, he says the ARI “ensures we’re not just reacting to fraud but staying ahead of it.”

Christ and Carpenter say the use of analytics, such as profiling journal entries, visualizing transactional flows and identifying outliers in large datasets allow for deeper, more targeted fraud risk assessments. “Several participants describe scenarios where data analytics enabled earlier or more accurate detection of errors or potential misconduct, compared to traditional audit procedures,” Christ says.

Breslin stresses the need for the important work of the ARI to continue “because fraud continues to evolve — and sadly — grow.” She encourages ACFE members to champion the work of the ARI by attending chapter events, making donations and attending the annual ARI meeting that occurs after the ACFE Global Fraud Conference. “It’s a fascinating event, and I personally enjoy listening to grant recipients’ presentations and meeting researchers who plan to apply for grants.”

Crystal Zuzek is assistant editor of Fraud Magazine. Contact her at czuzek@acfe.com.

Support the ARI

Eric Miles, CFE, CPA/CFF, a member of the Association of Certified Fraud Examiners (ACFE) Foundation Board of Directors, encourages CFEs to support research on the detection and deterrence of fraud through the ACFE Research Institute (ARI). “Donating to the Foundation is a way to invest in the future of our profession. If you’ve ever benefited from the insights in an ACFE report or training, chances are the Foundation helped make that possible. Every contribution helps advance the tools and knowledge we all rely on,” he says.

To fund research and education on the prevention of fraud, corruption and other white-collar crime, the ARI relies on the donations of generous CFEs, corporations and foundations from around the world. The ACFE Foundation is a 501(c)(3), tax-exempt organization. Contributions to the ACFE Foundation are tax deductible. Donations may be made online or by contacting an ACFE Member Service Representative at (800) 245-3321. Checks should be made payable to the ACFE Foundation and mailed to:

ACFE Foundation

Attn: Scholarship Program Coordinator

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