What Is A “Financial Fraud Investigator,” And What Do They Do?

What Is A “Financial Fraud Investigator,” And What Do They Do?

Financial fraud investigators must be vigilant, cunning, and clever – because if they’re tempted to fake findings or give less than 100% diligence, they could lose their freedom. They, therefore, must employ their heads as well as their hands. The role is unstable and can be financially rewarding, yet there are many challenges involved in the day-to-day work of an Financial Fraud Investigator. 

First, the construction challenge is to build fictional borrower names that people in the industry will recognize. Second, corporate documents like action and balance statements are a nightmare – no two are ever alike, even for similar loans. Third, documents don’t always reveal other suspicious areas such as delay or non-collection of hard-to-produce information such as estimated income or insurance values. 

What is a financial investigator, and what do they do?

A Financial Fraud Investigator works for an investigative or prosecutorial body like the Securities and Exchange Commission, FBI, or Department of Justice. They investigate potential criminal activity in the financial sector involving securities law violations, anti-money laundering regulations, terrorism financing rules, anti-fraud statutes, or information security.

Types of Financial Investigator Jobs

Financial fraud investigators are on the frontline of battling cases involving white-collar crimes.

financial fraud investigator

The most common type of white-collar crime that financial fraud investigators investigate is “derivative securities fraud,” which is the widespread practice of selling two different types of investments, usually stocks and options. Financial fraud investigators often do forensic analysis, which means analyzing detailed pieces of information to help put together a successful case for the government, investors, or consumers.

Why should someone consider becoming a financial investigator?

Having the knowledge and skills to spot financial fraud on your own will not only give you a significant amount of satisfaction, but it will also allow you to grow your knowledge in an area fascinating, especially with the volatile changes in the market every day. You can increase your chances of trying out new financial models and initiatives at work or even engage in your research related to one aspect of the business.

Salaries, Interviews, and Resources

Every business relies on its employees to carry out its tasks successfully. Financial fraud investigators are one type of employee who ensures that the company’s money is handled correctly. There is a lot of responsibility involved if you work in this field, as your company must stay successful in these turbulent times.


A “financial fraud investigator” spends their time looking for various fraudulent acts. They typically focus on specific areas of interest like tax fraud or investment fraud. During an investigation, the investigator may be gathering information from various sources such as interviews, records, journalist reports, financial crime and hackers and lab testing. The investigator seeks out and follows financial trails, monitors relationships between parties moving funds and the person potentially perpetrating fraud to ensure that the people who committed the crime hide their involvement well enough to avoid being caught.