How does the CFE contribute to the study of organized crime’s involvement in financial fraud?

A professional with a CFE certification is trained to remain vigilant in organized crime’s involvement in financial fraud. Their highly effective skills, quick response, and decision-making abilities are based on the extensive groundwork created by past fraudulent act patterns, fraud detection technologies, and best practices.  

Here is how a CFE contributes to the study of organized crime’s involvement in financial fraud-

• Data collection and ingestion: Certified fraud examiners gather massive amounts of device and behavior data is the first step in detecting digital banking fraud.
• Data preparation: They clean and format the collected data using cutting-edge tools to ensure uniformity and correctness.
• Automated behavior analysis: To detect anomalies, they analyze the collected data in real-time to typical patterns.
• Rule-based monitoring: This real-time fraud detection data is then filtered by using predefined rules and thresholds to identify user sessions or transactions that fulfill fraud risk criteria.
• Automated fraud detection: In some situations, certified fraud examiners may take additional actions on the data that might meet the criteria for an automated fraud reaction, such as immediately stopping a transaction or requiring the user to provide an additional authentication element.
• Alerting the analysts: In other circumstances, transactions or user sessions may be marked for manual analyst review by professionals with a CFE certification. This often arises when automated systems are unable to determine whether a transaction is real or fraudulent. Alerts are often ranked according to their potential severity.
• Customer communication: In some circumstances, certified fraud examiners may contact clients to obtain additional information and determine whether a specific transaction was permitted.
• Decision-making: Certified fraud examiners use data from real-time fraud detection systems and their own research to determine the validity of a transaction. They may choose to approve, refuse, or hold a transaction or account for review.
• Blocking and freezing accounts and payments as appropriate: When fraud is verified, certified fraud examiners may choose to restrict or freeze specific accounts or payments.
• Documentation and case management: Professionals with CFE certification maintain detailed records of the inquiry, including actions taken in a case management system. This documentation is required for compliance and reporting.
• Reporting: Fraud managers track individual fraud cases as part of their reporting process. These reports outline fraud trends, the effectiveness of the bank’s fraud prevention program, and the impact of fraud on the bank.
• A feedback loop: Analysts provide comments to assist develop fraud detection rules and algorithms, lowering false positives, and increasing fraud detection accuracy.