Fraud remains one of the most persistent threats to organizations worldwide, requiring well-structured internal fraud investigation teams to mitigate risks and recover losses. The Association of Certified Fraud Examiners (ACFE) recently released its 2025 Benchmarking Report on In-House Fraud Investigation Teams, offering valuable insights into how organizations can optimize their internal fraud teams for greater effectiveness.
According to the report, financial institutions and government agencies account for nearly half of all internal fraud investigation teams, highlighting the high-risk nature of these industries. With fraud schemes growing in complexity, organizations across all sectors must ensure their internal teams have the right structure, skills, and resources to tackle fraud effectively.
Key Components of a Strong Fraud Investigation Team
Adequate Staffing and Structure
The ACFE report found that organizations typically employ three fraud investigators for every 1,000 employees. However, team size varies based on organization size, with larger companies employing more investigators to manage increased fraud risks. While smaller teams may be cost-effective, under-resourcing can lead to case backlogs and longer resolution times.
Professional Expertise and Certifications
The Certified Fraud Examiner (CFE) designation is the most common credential among fraud investigators, held by 47% of professionals in the field. Other key certifications include Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information Systems Auditor (CISA). Organizations should prioritize hiring professionals with these qualifications to ensure their teams possess the necessary expertise in forensic accounting, financial analysis, and investigative techniques.
Workload Management and Efficiency
Fraud investigators handle an average caseload of fewer than five cases at any given time, with most cases being resolved within 30 days. However, some industries—such as healthcare and government—experience longer case durations. Organizations must assess investigator workload regularly to prevent burnout and maintain efficiency in closing cases.
Challenges Facing Fraud Investigation Teams
Resource Constraints
Managers of in-house fraud teams identified staffing and technological tools as the two areas where additional resources would be most beneficial. As fraudsters employ increasingly sophisticated tactics, teams must have access to advanced data analytics and investigative software to stay ahead.
Training and Development Gaps
Despite the growing complexity of fraud schemes, the median training budget per investigator has remained stagnant at $2,000 since 2019. Investing in continuous education and training ensures that fraud investigators stay updated on emerging threats and best practices.
Limited Recovery of Fraud Losses
While organizations investigate and substantiate fraud cases, most recover less than 50% of their losses, with 17% recovering nothing at all. Strengthening legal partnerships and recovery strategies—such as insurance claims and restitution efforts—can help improve financial outcomes after fraud incidents.
Building a More Effective Fraud Team
To enhance the effectiveness of internal fraud teams, organizations should:
- Expand hiring efforts to ensure adequate staffing ratios for fraud risk management.
- Encourage professional certification to build specialized investigative skills.
- Leverage technology to streamline fraud detection and forensic analysis.
- Increase training budgets to keep investigators informed about emerging fraud trends.
- Improve case resolution strategies to reduce investigation times and increase loss recovery.
Final Thoughts
A well-equipped fraud investigation team is critical for minimizing financial and reputational risks associated with internal fraud. By following industry benchmarks and investing in key resources, organizations can strengthen their internal controls and safeguard their assets against fraudulent activities.
If you need further guidance or have any questions, please do not hesitate to reach out to schedule a consultation. For more insights, access the full 2025 ACFE Benchmarking Report on In-House Fraud Investigation Teams.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
