Fraud managers are auditors that specialize in investigating financial crimes. They require strong communication, organization, mathematic and analytical skills. This article lays out just what it takes to become a fraud manager, as well as what to expect in the job market.
Fraud managers monitor and police economic crimes, especially in the corporate workplace. In practice, this can take the form of a number of jobs, but typically, the duties of fraud management coincide most with those of auditors and forensic accountants. A bachelor's degree in accounting or a related field is required by most employers.
|Required Education||Bachelor's degree in accounting or a related field|
|Projected Job Growth (2014-2024)||11% for accountants and auditors*|
|Median Annual Salary (2015)||$67,190 for accountants and auditors*|
Source: *U.S. Bureau of Labor Statistics (BLS)
The job of a fraud manager is to combat corporate financial crimes. This involves monitoring monetary transactions and accounting to detect erroneous or illegal procedures. Fraud management has become an especially important career given new federal laws and accounting regulations, as well as our increasingly globalized and high-tech economy. Fraud managers often work in the fields of accounting and auditing.
As of May 2015, the U.S. Bureau of Labor Statistics (BLS) reported that the median yearly wage for accountants and auditors was $67,190. At the low end, salaries in that profession settled around $41,400 or less, while on the high end, accountants and auditors earned $118,930 or more yearly. Employees in this field also tend to receive benefits, such as paid vacation, access to a retirement savings plan and insurance (health and life), according to the BLS. Additional perks for higher-up employees might include an expense account or company car.
Fraud managers can hold a number of careers in the corporate workplace. However, fraud management duties commonly fall into one of two types of jobs.
Government auditors work for local, state or federal institutions. Their job is to ensure that government agencies and individuals pay out and take in money in accordance with government regulations. They maintain government records and audit private individuals and businesses when noncompliance is suspected.
Auditors also might work for private companies as internal auditors. Their job is to examine their organization's managerial procedures and efficiency to eliminate any waste or potential fraud. Internal auditors are meant to catch any accounting mistakes before government auditors step in to ensure compliance.
Forensic accountants combine their knowledge of business and finance with their knowledge of the law to determine whether particular actions are legal. They deal with the realm of white-collar crime and often work closely with law enforcement agencies and lawyers in criminal investigations. They might even be called upon to investigate organized crime.
Fraud managers usually have a bachelor's degree in accounting, in order to master the organizational and mathematical skills required for the job. The job market should be favorable for these positions, especially for those holding a master's degree or other additional relevant certification. Those specializing in fraud may become government auditors or work for a private company as forensic accountants.