How to Become a Fraud Investigator

By Dr. Matthew Loux and Bryce Loux  |  03/24/2026

Almost every day, fraud is increasing in volume and significance. Fraud investigators discover, study, and attempt to lessen the frequency of fraud. They work in numerous fields, especially in:

• Financial services
• Insurance companies
• Government agencies
• Corporate security

Fraud examiners help clients protect their businesses and help them comply with pertinent laws and regulations. For this type of work, however, aspiring fraud investigators must:

• Possess strong analytical capabilities
• Be extremely focused and detail-oriented for fighting fraud
• Have a strong sense of professional ethics

What Fraud Investigators Do

Fraud investigators are responsible for financial activities that may be or are suspicious, as well as criminal activities. They must establish a case to substantiate the allegations against an organization or individual. Fraud investigators work with various professionals, such as law enforcement, corporate attorneys, and cyberspace security experts.

Common Types of Fraud Investigations

Fraud investigators check a wide range of possible fraudulent activities, such as:

• Financial fraud – The falsification of accounting records, theft, embezzlement, and the generation of fictitious loans at financial institutions such as banks.
• Insurance fraud – Filing of false insurance claims and inflating the amounts being claimed
• Identity theft – the misuse of an individual’s or a company’s private data
• Cybercrime – phishing, hacking, and other fraudulent online acts
• Corporate fraud – insider trading, bribery, and fraud in procurement

Fraud is usually uncovered by the diligent examination of financial records, behavioral patterns, and the analysis of transactions. Fraud investigators evaluate a range of transactions to pinpoint potential fraud, assess the extent of suspicious activities, and identify measures to eliminate fraud.

This type of work involves:

• Analyzing financial records, contracts, and other relevant documents
• Conducting interviews with relevant employees, clients, and other witnesses.
• Liaising and working with police or other enforcement agencies

Requirements to Become a Fraud Investigator

Fraud investigation will require you to have knowledge pertaining to law, finance, and analysis. Although the requirements for becoming a fraud investigator vary by employer, they generally require:

• Meeting basic degree requirements
• Gaining professional experience
• Obtaining certifications
• Pursuing an advanced degree

Meeting Basic Degree Requirements

If you aspire to become a fraud investigator, you should at least earn a bachelor’s degree. This bachelor’s degree can be obtained one of several fields, such as:

• Accounting or finance
• Criminal justice or criminology
• Business
• Forensic accounting
• Information technology
• Cybersecurity
• Business administration

An associate degree in a related field – such as accounting, criminal justice, or business – can also help fulfill entry-level requirements or supplement your qualifications.

Gaining Professional Experience

Most potential fraud investigators learn company-specific systems, toolsets, and investigative procedures through volunteer opportunities, internships, or entry-level jobs. This type of training includes:

• Computer systems
• Auditing
• Fraud detection software for determining fraudulent activities
• Data analysis tools such as Structured Query Language (SQL) and Microsoft Excel®
• Database management
• Investigative techniques
• Risk assessments
• Internal reporting procedures and internal controls
• Legal considerations
• Interdepartmental work with legal and/or compliance teams
• Cooperation with investigations of senior staff

Pursuing an Advanced Degree

If you intend to eventually prepare for a managerial or supervisory role, a master’s degree can be a useful addition to your practical, on-the-job experience. Relevant degrees for fraud investigation professionals include:

• Forensic accounting
• Financial crime investigation
• Cybersecurity and digital forensics
• Business risk management

An MBA in Forensics and Fraud Examination is especially useful. It can provide advanced knowledge and skills relevant to fraud investigation and is highly valued by individuals pursuing leadership roles or specialized positions.

Obtaining Certifications

Professional certifications demonstrate your knowledge and credibility to potential employers. Some applicable certifications to complete include:

• Certified Fraud Examiner (CFE®) – Investigates fraud
• Certified Financial Crime Specialist (CFCS®) – Specializes in financial crimes and anti-money laundering
• Certified Anti-Money Laundering Specialist (CAMS®) – Applicable in the banking and financial sector
• Certified Forensic Accountant (CFA®) – Assists in the fraud investigations of accounting

The Certified Fraud Examiner (CFE) credential is offered through the Association of Certified Fraud Examiners (ACFE). To qualify, you’ll need at least a bachelor’s degree in accounting, finance, business, criminal justice, or a related field. In addition, you will need at least two years of work experience in fraud prevention, financial investigations, or forensic accounting.

The CFE exam covers four key areas:

• Financial transactions and fraud schemes
• Investigation
• Fraud prevention and deterrence
• The law

Beginning in June 2026, a new version of the CFE exam will reflect updated skills for modern investigations. After passing the exam and meeting other requirements, you will then be eligible for ACFE membership, a useful credential to have.

Specialized Skills Needed to Become a Fraud Investigator

In addition to obtaining the technology knowledge for fraud prevention, there are other skills that aspiring fraud investigators should possess when taking this career path. These skills include:

• Analytical abilities
• Strong attention to detail
• Investigative skills
• Communication skills, which are helpful for research, report writing, and interviews
• A knowledge of different frauds, anti-money laundering practices and other anti-fraud measures, and legal regulations
• A strong moral compass

Tips for Aspiring Fraud Investigators

Today’s financial, business, and digital environments are rapidly increasing in complexity. Consequently, pursuing further education, certifications, and professional development opportunities is crucial for interested fraud investigation candidates. Staying updated on changes in fraud methods, cybercrime, and related laws is also essential to maintain your expertise.

In-person networking and reading published articles in Fraud magazine are also important to advance your knowledge. It’s useful for aspiring fraud investigators to:

• Join professional associations
• Attend various seminars and workshops
• Communicate with experts

 Investigating fraud is a profession suited to people who enjoy cultivating their problem-solving abilities, working with evidence, and analyzing complex patterns. This type of work is both satisfying and stimulating.

The Bachelor of Arts in Criminal Justice at AMU

For students who seek to gain more information about the criminal justice field, American Military University (AMU) has an online Bachelor of Arts in Criminal Justice. This B.A. in criminal justice offers courses in ethics in criminal justice, criminal law, and constitutional law. Other courses include U.S. law enforcement, the criminal legal process, criminal profiling, and crime analysis.

Four concentrations are offered for this B.A. in criminal justice. They include:

• General
• Maritime law enforcement
• Entrepreneurship
• Organizational law enforcement leadership

For more information about our B.A. in criminal justice and its courses, visit AMU’s criminal justice degree program page.

Note: This degree program is not designed to meet the educational requirements for professional licensure or certification in any country, state, province, or other jurisdiction. This program has not been approved by any state professional licensing body and does not lead to any state-issued professional licensure.
Certified Fraud Examiner is a registered trademark of the Association of Certified Fraud Examiners.
Certified Financial Crimes Specialist is a registered trademark of the Association of Certified Financial Crime Specialists.
Certified Anti-Money Laundering Specialist is a registered trademark of the Association of Certified Anti-Money Laundering Specialists, LLC.
Certified Forensic Accountant is a registered trademark of the American Board of Forensic Accounting.
Microsoft Excel is a registered trademark of the Microsoft Corporation.