Fraud Specialist Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a fraud specialist. You can use our job description template in this article to produce your own. We also provide you with information about the salary you can earn as a fraud specialist.
Who is a Fraud Specialist?
A fraud specialist investigates suspicious activity and works to prevent fraud. These individuals are security experts and often work with law enforcement to catch fraudsters. Success in this field usually requires someone with extensive knowledge of finance and computer systems. Common tasks of a fraud specialist include learning modern criminal fraud methods and tools, developing prevention techniques, monitoring financial data, detecting and investigating potential fraud, and writing reports.
Due to the constant evolution of technology, a fraud specialist must learn modern methods and means of fighting criminal fraud. As fraud detection is often a cat-and-mouse game, the fraud specialist must be up to date with new technologies to carry out his/her work. As part of this work, the specialist may investigate new ways in which criminals are using computers to access credit card or bank account information.
In many cases, fraud analysis can help in developing fraud prevention practices. This practice usually involves implementing information that has been obtained using fraud techniques and tools and is used to help companies improve the security of transactions. It may also assess a company’s current security arrangements to identify security weaknesses and explain preventive measures.
Perhaps the most important part of this work is the monitoring of financial data. This usually involves the monitoring of financial transactions, such as credit or debit cards and cash withdrawals.
Essentially, the job of a fraud specialist is to identify irregular money exchange patterns that look suspicious. Due to the complex nature of this job, it requires someone with an analytical mind and an eye for detail.
Also, the fraud specialist is responsible for identifying and investigating cases of possible fraud. If a transaction looks suspicious or irregular patterns emerge, he or she should investigate the matter. For example, if a suspiciously large number of cash transactions is taking place in a bank account, they may investigate long-term account patterns. If the findings point to criminal activity, the fraud specialist will usually refer the matter to law enforcement for further investigation.
In addition, the fraud specialist usually prepares reports on each case of possible fraud. These reports may contain information such as financial transactions, dates of transactions, and names on the account. This makes it easier for the authorities to recognize patterns and these reports are often used in court. In some cases, the fraud examiner is also required to attend court hearings to give evidence.
Fraud Specialist Job Description
Below are the fraud specialist job description examples you can use to develop your resume or write a job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a Fraud Specialist include the following:
- Using public sources, law enforcement data, and third-party data to support research and case construction.
- Undertaking compliance training and adhering to internal procedures and controls as appropriate.
- Coordinating data extraction by evaluating multiple databases, both internal and external.
- Conducting thorough investigations to determine the identity of the suspect.
- Participating fully in communication with the team and guiding the team as required.
- Notifying customers, suppliers, or vendors of ongoing fraud cases.
- Performing supervisory duties following the organization’s policies and applicable laws.
- Managing parallel tasks and documenting decisions accurately.
- Giving annual updates on changes in insurance legislation as it relates to the business lines.
- Recommending solutions and process changes to ensure that problems are given a lasting solution
- Conducting interviews, which may include suppliers and participants, and which may be conducted on or off-site.
- Assisting the Senior Investigators with administrative support, including client contact and event organization.
- Analyzing and taking ownership of results and making appropriate adjustments for the future
- Developing litigation correspondence and case files to meet or exceed established standards of quality and expected performance.
- Resolving cardholder claims using Association guidelines while complying with federal regulations.
Qualifications
Fraud Specialists generally require the following qualifications:
Education
Fraud specialists generally require a bachelor’s degree in criminal justice, accounting, finance, or another closely related field. Some fraud specialists choose to earn a master’s degree in criminal justice or fraud management to increase their earning potential and qualify for higher fraud specialist positions.
Training and experience
Fraud specialists typically receive on-the-job training once they are hired. This training may include learning the company’s policies and procedures, as well as the software and technology being used. Fraud specialists may also receive training in fraud prevention and detection.
Certification and licensing
Fraud specialists may get certified to gain additional knowledge about their responsibilities, test their professional skills, and advance their careers.
Essential Skills
- Fraud detection
Fraud detection is the ability to identify when someone is committing fraudulent acts. This skill can help you find evidence of fraud and prevent others from taking similar actions in the future. To develop your ability to detect fraud, read books or take courses on financial rules and laws. You can also research past fraud cases to see how investigators found evidence of these crimes.
- Auditing
Auditing is the process of checking financial records to make sure they are accurate. Fraud specialists with auditing skills can examine a company’s books and detect irregularities that may indicate fraudulent activity. Auditing requires attention to detail, analytical skills, and the ability to interpret complex information. Auditing also involves communicating their findings, so excellent written communication skills are another important aspect of a fraud specialist’s job.
- Attention to detail
Attention to detail is the ability to notice small details and make accurate observations. As a fraud specialist, you may have to study large volumes of data to find anomalies that could indicate fraudulent activity. Being able to spot these anomalies can help you prevent or detect fraud before it occurs. You also use your attention to detail to analyze the evidence and record your findings.
- Time management
Time management is the ability to plan and execute tasks to meet deadlines. Fraud specialists need to manage their time properly so that they can complete all their tasks on time. This includes planning meetings with clients, preparing reports, and analyzing data. It also involves managing your workload effectively so that you do not take on tasks more than you can handle.
- Organizational skills
Strong organizational skills are important for fraud specialists as they enable them to keep track of their work and ensure that all necessary tasks are completed. It also helps them to meet deadlines and other commitments related to their work. Strong organizational skills can also help you to be more efficient in your work, which can enable you to cope with your workload.
- Analytical skills
Fraud specialists need to be able to analyze data and information to determine whether a company is at risk of becoming a victim of fraud. They also use their analytical skills when developing fraud prevention strategies, as these strategies often depend on the results of data analysis of potential risks. For example, if a company has experienced several instances of employees making duplicate payments, a fraud specialist may recommend the implementation of software that will prevent similar actions in the future.
- Critical thinking
Critical thinking is the ability to analyze a situation and make logical decisions based on available information. Fraud specialists use critical thinking skills when assessing potential risks, investigating cases, and developing solutions. This skill set also includes the attention to detail that fraud specialists need to detect anomalies in financial records or other documents that may indicate fraudulent activity.
- Problem-solving skills
Problem-solving skills are necessary for fraud specialists to identify and solve problems. They use these skills when investigating cases, as they may need to find the source of a problem or determine how someone committed an act of fraud. This skill set can help you improve your ability to identify fraudulent acts to prevent future incidents.
- Flexibility
Flexibility is the ability to adapt to changing circumstances. As a fraud specialist, you may have to switch between tasks while doing your job. Flexibility helps you focus on getting the job done and meeting deadlines. It also allows you to adapt to new challenges in the workplace and maintain a positive attitude in the face of obstacles.
- Risk management
Risk management is the ability to identify and minimize risks. As a fraud specialist, you may need to assess the potential financial losses due to fraudulent activity. It involves identifying vulnerabilities in an organization’s security protocols or procedures and developing solutions to mitigate these risks. You can also use risk management when creating policies and procedures, assessing the likelihood of certain outcomes, and determining the best strategy to use to mitigate them.
- Financial analysis
Financial analysis is the ability to interpret financial data and make informed decisions based on that information. As a fraud specialist, you may need to analyze company records to determine if there are irregularities in the use of funds or if some employees are being paid more than others for similar work. This skill can help you identify potential fraudulent activities within the organization.
How to Become a Fraud Specialist
- Get educated
The minimum education requirement for most entry-level fraud specialists is a high school diploma or its equivalent. However, some employers may require a bachelor’s or associate’s degree in accounting, criminal justice, business administration, fraud management, or economic crime. Each industry in which fraud specialists work may have specific requirements. By taking forensic accounting and criminal justice courses, you will learn the basics of accounting investigations, litigation support, fraud data analysis, contemporary political philosophy, social issues, public policy, and computer research.
These degree programs last from two to four years, depending on your student status. Having a course or degree in fraud management or a related field will help you stand out from the crowd when you start applying for jobs.
- Gain experience in the field
The best way to gain experience as a fraud specialist is to do an internship or get a part-time job in this field. If possible, you can try to gain experience during an educational program or after you finish your training. These opportunities will allow you to gain practical experience in the field of fraud and are likely to increase your chances of obtaining a permanent full-time position as a fraud specialist after graduation. You must have one to three years of relevant experience before you can write the Advanced Certificate Examination.
- Passing the advanced certification exams
Certification is not mandatory for fraud specialists, but companies may prefer to hire a candidate with relevant qualifications. The two main fraud specialist certification programs you can consider are the Certified Fraud Examiner (CFE) and the Certified Insurance Fraud Investigator (CIFI). The CFE program is offered by the Association of Certified Fraud Examiners (ACFE) and the CIFI program is offered by the International Association of Special Investigation Units (IASI). These certifications will help you demonstrate your professional fraud skills, increase your revenue, improve your competitiveness and advance your career.
- Obtain a license
Licensing requirements vary depending on the state in which you live. You will need to comply with all the laws of the state in which you choose to investigate fraud. Some states may require you to take a course to obtain a provisional license and pass an exam before you can obtain your license. Other states may require your employer to be licensed and allow you to work for a licensed company without having your license.
- Update your CV
Once you have met the training, certification, and licensing requirements, it is important to update your CV with relevant skills and experience. For example, you can try searching the job descriptions of the positions you are applying for, noting the essential skills and requirements, and adding these skills to your CV based on your relevant experience. A well-designed CV will help you stand out from the crowd.
- Continue your education
Some states may require a fraud specialist to take continuing education courses to maintain their license. Your employer may also require you to periodically update your knowledge of certain aspects of fraud, as techniques are likely to change throughout your employment.
Where to Work as a Fraud Specialist
Fraud specialists work in a variety of places, including corporate fraud departments, government agencies, and private investigation firms. They usually work full-time, and some may work for more than 40 hours a week. Many fraud specialists work on cases that require them to travel. Some fraud specialists work from home and others may have to work on weekends or evenings to complete their investigations. Fraud specialists can be under a lot of stress because they have to meet deadlines and work on complex cases.
Fraud Specialist Salary Scale
The average salary for a fraud specialist in the United States is $39,351, but the salary range is generally between $34,059 and $46,467.