How CFEs Combat Cyber Fraud and Identity Theft

Cybercrime has emerged as a significant issue due to the persistent efforts of criminals to misuse technology for personal benefit. Cybercrime not only has disastrous effects on people, but also on organizations, and even entire nations.CFEs play a crucial role in preventing financial fraud. They identify vulnerabilities, conduct fraud risk assessments, investigate fraud, and provide training and education to prevent and detect fraud. Such crimes can take the shape of identity theft, KYC scams, employment fraud, and metaverse fraud. The repercussions of cyber fraud go beyond monetary losses and can result in reputational damages, a loss of customer trust, and national security, read more. 

Under the growing cyber fraud incidents, a report by Norton Cyber Safety Insights Report highlights that approximately 4 out of 10 Indian adults have at some point in their lives been the victim of identity theft. Identity theft has grown to be a significant global security risk for people. The confluence of this growing habit, digital disruption, and technical development have given rise to a sophisticated terrain for identity theft schemes. Numerous victims claimed that their private information, including Aadhar card numbers, financial accounts, and transaction histories, had been taken. 

How do CFEs combat fraudulent incidents?

Certified fraud examiners commence fraud investigation through a close communication between the client and the investigator. The study usually proceeds to the CFE initiating an investigation, during which the evidence supporting the suspect’s dishonesty is addressed and the person suspected of lying is examined. The CFE also advises a thorough examination of the evidence through asset searches, surveillance, personnel investigations, background checks, and business investigations.

CFEs employ a response team to provide as much detail as relevant when conducting fraud investigations, which is one of the most important components of their R&R. To help safeguard financial data, transactions, and processes, CFEs identify warning signs and possible fraud indicators using data analysis, forensic accounting, and investigation techniques. This reduces the possibility that fraudulent activity will occur and highlights weak points in internal controls or operational procedures that require further attention inside an organization. Since CFEs are fully equipped to discover instances of tax evasion and support auditors, they mitigate significant losses for the financial sector, read more.

Internet fraudsters target victims and employ a variety of strategies, such as phishing, deep flakes, malware, and more, to steal transaction data or personal information to significantly reduce their capital. In addition to identifying these kinds of fraud, a CFE instructs staff members on how to keep an eye out for instances of online fraud. 

CFEs are also qualified to create and carry out fraud prevention plans that can assist reduce risks to the financial industry in advance, expedite the investigation process, and promote an ethical and regulatory-compliant culture. To provide a more unified and thorough approach to financial fraud management, CFEs work in conjunction with internal departments, legal counsel, external auditors, and law enforcement agencies throughout their investigative processes. 

Why is a certified fraud examiner necessary for your company?

In the digital age, no organization is immune to cyber fraud. Your company whether small, medium, or large size, needs a certified fraud examiner to protect its ideas, finances, product, supply chain, and reputation.

To streamline this process, Netrika has partnered with ACFE India to become the first accredited CFE training partner in India, providing the fraud examiner certification course across many industry verticals. We are a world leader in offering specialized training programs taught by subject matter experts with years of experience in the relevant industries.