What Does a Fraud Analyst Do?

Fraud analysts are responsible for investigating and stopping fraud in their organization. They commonly work with a team of other analysts, investigators, auditors, etc., to identify instances of fraud and determine how best to prevent it from happening again.

Fraud analysts may also be tasked with developing new methods for identifying and preventing fraud. This might include creating new software programs or processes that can help flag suspicious activity before it becomes an issue.

Fraud Analyst Job Duties

Fraud analysts have a wide range of responsibilities, which can include:

• Interviewing employees who have been accused of misconduct in order to gather evidence
• Documenting fraud schemes and identifying patterns of fraudulent activity
• Reviewing financial records to determine whether transactions are consistent with stated policies and procedures
• Working with outside law enforcement agencies to investigate and prosecute cases of fraud
• Analyzing data to identify patterns of fraudulent activity
• Conducting research on new methods of fraud that may be emerging in the industry
• Identifying fraudulent activities within an organization and recommending solutions to prevent future occurrences
• Reporting findings to senior management to help prevent future incidents of fraud
• Developing training programs for employees on how to recognize potential fraud schemes and prevent them from occurring

Fraud Analyst Salary & Outlook

Fraud analysts’ salaries vary depending on their level of education, years of experience, and the company size and industry. They may also earn additional compensation in the form of bonuses.

• Median Annual Salary: $52,500 ($25.24/hour)
• Top 10% Annual Salary: $112,000 ($53.85/hour)

The employment of fraud analysts is expected to grow faster than average over the next decade.

Demand for fraud analysis will be driven by the need to prevent and detect fraudulent activities, such as credit card and identity theft, in addition to other types of crime. Organizations will continue to invest in fraud-detection software to help identify suspicious activity and reduce losses.

Related: 17 Fraud Analyst Interview Questions and Answers

Fraud Analyst Job Requirements

Fraud analysts typically need to have the following background:

Education: Fraud analysts typically need a bachelor’s degree in criminal justice, accounting, finance or another closely related field. Some fraud analysts choose to earn a master’s degree in criminal justice or business administration to increase their earning potential and qualify for senior fraud analyst positions.

Training & Experience: Fraud analysts typically receive on-the-job training to learn the specific processes and procedures of their role. Training may include shadowing current fraud analysts or learning from a senior-level employee. Training may last for a few weeks to a few months.

Certifications & Licenses: Certifications are not usually a requirement as a fraud analyst, but they can help you stand out from other candidates and demonstrate your commitment to your career.

Fraud Analyst Skills

Fraud analysts need the following skills in order to be successful:

Technical skills: The ability to use technology and software is an important skill for a fraud analyst. They use these skills to analyze data and create reports for their employers. They also use these skills to find and track suspicious activity online.

Analytical skills: Analytical skills are the ability to identify patterns and draw conclusions based on evidence. Fraud analysts use analytical skills to identify fraudulent activity and develop strategies to prevent it. They use analytical skills to investigate suspicious activity and determine if it’s fraudulent.

Communication skills: Communication skills are essential for fraud analysts, as they often work with a variety of individuals from different backgrounds. They need to be able to explain complex information in a way that is easy to understand. They also need to be able to communicate with individuals from other countries, as many companies have international operations.

Research skills: As a fraud analyst, you may be required to research various topics to help you understand the nature of a potential fraud. For example, you may need to research the company’s history to understand why a certain transaction occurred.

Business acumen: Having business acumen means having a thorough understanding of business practices and how businesses operate. This can include knowledge of how businesses make money, how they attract customers and how they operate within the larger economy. Having business acumen can help you understand the potential impact of fraud and how to best prevent it.

Fraud Analyst Work Environment

Fraud analysts work in a variety of settings, including corporate fraud departments, banks, insurance companies, and government agencies. They typically work regular business hours, although they may be required to work overtime to complete investigations or to meet deadlines. Fraud analysts may be under a great deal of pressure to prevent and detect fraud, as well as to resolve cases quickly and efficiently. This pressure can be stressful and may require long hours of work. Fraud analysts must be able to maintain confidentiality and objectivity in their work and must have excellent analytical, problem-solving, and communication skills.

Fraud Analyst Trends

Here are three trends influencing how fraud analysts work. Fraud analysts will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Growth of Data Analytics

The growth of data analytics is a trend that is quickly changing the way businesses operate. By using data to make decisions, businesses can more accurately predict customer behavior and improve their products and services.

As data becomes increasingly important, fraud analysts will need to be able to analyze large amounts of data in order to identify patterns and potential risks. This requires a strong understanding of data analysis tools and techniques.

More Collaboration Between Business Units

Fraud analysts are increasingly being called upon to collaborate with other business units in order to prevent and detect fraud. This trend is due to the fact that fraud is becoming more complex and difficult to detect, which requires a team effort to solve.

By collaborating with other business units, fraud analysts can better understand the financial operations of their company and spot red flags earlier on. They can also work together to create policies and procedures that help protect the company from fraud.

Greater Use of Artificial Intelligence (AI)

Artificial intelligence is an emerging technology that is being used by businesses across all industries. As AI becomes more popular, fraud analysts will need to learn how to use it to their advantage.

By using artificial intelligence, fraud analysts can automate many of the tasks that they traditionally had to do manually. This allows them to focus on more important tasks, such as analyzing data and investigating suspicious activity.

How to Become a Fraud Analyst

A fraud analyst career path can be very rewarding. It offers the opportunity to make a real difference in the lives of people who have been victims of fraud. You’ll also learn about new scams and ways that criminals try to take advantage of people.

To become a fraud analyst, you need to have strong analytical skills and be able to think critically. You should also be comfortable with math and statistics. It’s also important to have good communication skills so that you can explain complex ideas to non-experts.

Advancement Prospects

Fraud analysts can advance their careers by taking on more responsibility within their organization, such as heading up a team of fraud analysts. They may also move into management positions, such as fraud prevention manager. Some fraud analysts may eventually open their own consulting firms.

Fraud Analyst Job Description Example

At [CompanyX], we are committed to providing our customers with the highest level of security and protection against fraud. We are looking for a highly analytical and detail-oriented professional to join our team as a fraud analyst. In this role, you will be responsible for identifying, investigating, and preventing instances of fraud. You will use your analytical skills to examine data and trends, and your investigative skills to follow up on leads. You must be able to think creatively to develop new ways to detect and prevent fraud, and you must be able to communicate effectively to share your findings with the team.

Duties & Responsibilities

• Serve as the first line of defense against fraud and financial crimes by identifying, investigating, and reporting any suspicious activity
• Analyze customer data and transactions for patterns of fraud using various analytical tools and techniques
• Conduct in-depth research on cases of potential fraud, working with law enforcement when necessary
• Prepare detailed reports documenting findings and making recommendations for prevention or further action
• Stay up-to-date on current trends in fraud and financial crimes, sharing information with the team as needed
• Assist in the development and implementation of new policies and procedures related to fraud detection and prevention
• Train new employees on fraud detection and prevention procedures
• Monitor customer accounts for changes that could indicate fraud
• Work with customer service representatives to resolve customer complaints related to fraud
• Review documentation from loan applications for signs of fraud
• Investigate insurance claims for fraud
• Coordinate with other departments within the company to prevent and resolve instances of fraud

Required Skills and Qualifications

• Bachelor’s degree in business, accounting, finance, or related field
• 3+ years experience in fraud analysis or related role
• Proficient in Microsoft Office, with aptitude to learn new software and systems
• Solid analytical and research skills
• Excellent attention to detail
• Strong time-management and multitasking ability
• Ability to work independently and as part of a team

Preferred Skills and Qualifications

• CFE, CPA, or other professional certification
• MBA or other advanced degree
• Experience with data mining and statistical analysis
• Familiarity with SQL, SAS, or other programming languages