The evolution of fraud and the importance of continuous professional development and learning

December 17, 2024

image: ©sestovic | iStock

This article looks at how fraud has evolved, why continuous professional development (CPD) is crucial for fraud investigators, and some practical ways to stay sharp in the fight against fraud

Fraud isn’t new; humans have been conning each other since the first trade deals. But in today’s hyper-connected world, the game has changed. From simple tricks like forging signatures to complex schemes involving cryptocurrencies and AI, fraud has evolved into a multi-billion-pound global menace. For investigators, the challenge is staying one step ahead in a landscape that changes faster than ever.

Fraud’s evolution: From quill pens to sunken cargo to cryptocurrencies, NFTs and QR codes

Once upon a time, fraud was pretty straightforward: deliberately sinking a cargo ship and claiming for the loss, faking documents, or misappropriating funds. But the digital age has taken fraud to a whole new level.

Now, cyber fraud like phishing and ransomware dominates, while emerging threats such as cryptocurrency scams and deepfake technology keep investigators on their toes. Fraudsters are more organised, operating like businesses with specialists in hacking, social engineering, and data theft. Some don’t even care about money directly; stealing intellectual property or sabotaging reputations can be just as lucrative.

Why CPD matters in fraud investigation

Fraud isn’t static, and neither can investigators be. Continuous professional development is about more than staying relevant; it’s about staying effective, ethical, and lawful in a field that demands constant adaptation.

Here are some of the key areas where continuous professional development makes all the difference:

Keeping up with changes in legislation: Fraud legislation and regulations evolve to meet new threats. In the UK, for example, GDPR shook up how organisations handle personal data, impacting investigations. Even more recently, we saw the introduction of the Economic Crime and Corporate Transparency Act 2024 (ECCTA), which, in part, is aimed at large organisations that fail to take adequate measures to prevent fraud.
Staying current on case law: What’s illegal isn’t just defined by legislation; court decisions shape it. Knowing recent case law helps investigators make sound decisions, especially when assessing the strength of evidence. Comparatively recent developments in defining dishonesty and the proof required to serve as a good example of why investigators need to keep on top of this.
Tackling new fraud tactics: Fraudsters are always innovating. From advanced social engineering to exploiting vulnerabilities in new tech, their methods are constantly evolving. Investigators must stay ahead by learning about the latest tactics and modus operandi.
Embracing technology: Technology cuts both ways. Fraudsters use it to scale their crimes, but investigators can fight back with tools like digital forensics, data analysis, and even AI-driven fraud detection. Being tech-savvy is no longer optional; it’s essential.

How investigators can stay ahead of fraudsters

Here are some practical ideas for staying on top of trends and skills:

Undertake focused training from a credible and capable training supplier: Sign up for training through organisations like Intelligencia, which offers and delivers the Level 4 Counter Fraud Investigation Apprenticeship, which provides a detailed, solid mix of practical and theoretical learning focused specifically on the skills, knowledge, and behaviours a modern fraud investigator needs.
Attend conferences: Fraud conferences, such as those from the Fraud Advisory Panel and the various UK Regional Fraud Forums, are goldmines for learning. You’ll hear from experts, network with peers, and learn new techniques.
Use eLearning platforms: Online platforms like LinkedIn Learning and Coursera offer bite-sized modules on digital forensics, cybersecurity, and data analysis. These are great for picking up niche skills without committing to long courses.
Follow regulatory bodies: Agencies like the UK’s Financial Conduct Authority (FCA), the Government Counter Fraud Profession, and the National Crime Agency (NCA) regularly publish updates and guidance. Sign up for alerts to stay informed.
Join online communities: Forums and groups on LinkedIn or industry- specific sites are great for sharing experiences and learning from peers.

Fraud trends every investigator should know

To illustrate how fast fraud evolves, here’s a snapshot of some of today’s common threats:

Cryptocurrency scams: Cryptocurrency’s range and continuous evolution make it a magnet for fraud. From fake exchanges to fake investments and continuous developments in confidential and seemingly untraceable currencies,
the opportunities are endless and under-regulated.
Business email compromise: Impersonating executives or suppliers via email to trick companies into transferring money into the fraudster’s accounts.
Deepfake technology: Fraudsters can mimic voices and faces using AI, using the technology to obtain authorisations and make impersonations more believable.
Fake charities: Exploiting crises to solicit fake donations is a perennial scam, and the pandemic has fuelled a surge in fake relief funds.
Social media scams: Fraudsters pose as influencers or experts, promote fake investment schemes, and disappear with the money.
QR code fraud: Manufacturing a QR code using AI so that when used by an unsuspecting member of the public to pay for goods or services, the funds are directed to an account controlled by the fraudster.

Adapting to the future

Fraud is a moving target and constantly evolving. It is chameleon-like and behaves like a bubble. When squeezed in one area, it tends to emerge in another. However, by committing to lifelong learning, investigators can stay ahead of the curve. Continuing Professional Development (CPD) ensures they remain competent and confident, ready to tackle whatever new methods and practices fraudsters may devise.

By combining ongoing education with a strong professional network, fraud investigators can protect individuals, businesses, and public institutions from the ever-changing fraud landscape. The highly experienced team of Counter Fraud trainers at Intelligencia continually develops their knowledge to provide cutting-edge training. This effort is enhanced by monthly newsletters sent to all learners, highlighting new and evolving fraud methods, investigation techniques and tools, and updates on successful fraud investigations from both the public and private sectors. Solid, credible, and up-to-date initial training and continuous career-long learning are essential for Counter Fraud Investigators.

“It is not the strongest of the species that survives, nor the most intelligent; it is the one that is most adaptable to change.” (Commonly attributed to Charles Darwin regarding the origin of species.)