Bite-Sized Business Law Stories from a Real-Life Financial Sherlock Holmes
What does it take to catch a fraudster? In this episode of Bite-Sized Business Law, we explore the world of Certified Fraud Examiners (CFEs), the experts who investigate wrongdoing across corporations, government agencies, and beyond. Our guest is John Gill, President of the Association of Certified Fraud Examiners (ACFE), who began his journey with the organization over 30 years ago as general counsel. A global authority on fraud prevention, John has trained Fortune 500 companies, advised governments, and taught on six continents. He breaks down the three major types of occupational fraud (asset misappropriation, corruption, and financial statement fraud) and shares real-world cases that reveal just how easily internal controls can fail. From employees wiring millions to their personal accounts to fake audit reports going unquestioned, John shows how fraud often thrives on trust, opportunity, and rationalization. He also unpacks how AI is being used in the fight against fraud and what kind of mindset makes a great CFE. Tune in to learn how CFEs help safeguard financial integrity, and what it really takes to spot the red flags before it’s too late!
Key Points From This Episode:
- John Gill shares his path from law school to leading the ACFE.
- How a love of consumer protection led John to fraud prevention.
- Ways that CFEs think like detectives and spot red flags that others overlook.
- What led to the founding of the ACFE in the late 1980s.
- A breakdown of the three major types of occupational fraud.
- How 5% of revenue is lost annually to occupational fraud.
- Real-world cases: $22M stolen from Citigroup and $9M from ING with minimal oversight.
- The importance of internal controls and how they often fail.
- Why first-time fraudsters rarely stop at just one offense.
- What drives fraud: pressure, opportunity, and rationalization.
- How fraudsters exploit weak audit processes and personal trust.
- The use of cryptocurrency in laundering stolen funds.
- AI’s growing role in fraud detection and its limitations.
- Key traits that make someone well-suited to become a CFE.
- Why CFEs often face resistance, even inside their own organizations.
- Reflections on the global mission to detect and prevent fraud, from Arkansas to Dubai.
Links Mentioned in Today’s Episode:
Association of Certified Fraud Examiners (ACFE)