Navigating Diversity, Equity and Inclusion in Fraud Investigations

At the 35th Annual ACFE Global Fraud Conference, Adesola Osuji, CFE, lead a compelling session titled “Navigating Diversity, Equity and Inclusion in Fraud Investigations”. Osuji is the head of internal audit at Save the Children UK and spoke about the transformative potential of integrating diversity, equity and inclusion (DEI) principles into the fabric of fraud investigations, emphasizing not only compliance but also ethical and empathetic practices.

Frameworks for DEI in Fraud Investigations

Adopting DEI principles in fraud investigations enhances objectivity, cultural competence and ultimately strengthens trust. Osuji highlighted several frameworks such as critical race theory (CRT) and intersectionality.

Critical race theory challenges us to recognize that exclusion can be subtle yet pervasive, affecting how investigations are conducted and interpreted. This theory posits the “thesis of the ordinariness of exclusion,” meaning that exclusion happens ordinarily every day. It is a reality for the people who are excluded that there is nothing special or abnormal about the experience of being excluded.

One audience member aptly noted that, “If you have an unconscious bias, you might miss something in a fraud investigation.” Osuji emphasized, “You cannot successfully have conversations on inclusivity without having the voices of the people who are excluded at the table.”

Intersectionality underscores that identities and experiences intersect, influencing perceptions and biases in fraud investigations. Osuji discussed how certain biases can influence decisions by stating that, “Male, or people who identify as male, are [statistically] more fraudulent. Regardless of whether we like it or not, regardless of bias, that is a data point. Now that you are aware that those biases can exist because of identifiers, we need to remind ourselves and ask ourselves this: ‘Am I taking this because there is empirical evidence or am I taking it because there is an anecdotal bias?’”

She illustrated this with a personal anecdote saying, “For instance, if I pick up my phone or if a number calls me and there is a particular accent, I won’t even have the conversation at all. Right? And it may be an important conversation to have but I am like, no, no, no, this must be fraudulent. What is my business for that exclusion? I have never been defrauded before. Nobody has called me on a fraud call before. Because I saw it or read it somewhere, I have adopted it as my own bias.”

Practical Applications and Challenges

Embedding DEI in fraud investigations requires deliberate efforts across leadership, training, team composition, policies and accountability measures. Osuji stressed the importance of diverse investigation teams to mitigate biases and enhance investigative rigor by stating, “We need to be more intentional about having more diverse investigation teams.” However, challenges like implicit biases, cultural sensitivities and resource limitations underscore the complexity of implementing DEI effectively.

A critical aspect discussed was building rapport with interview subjects through a DEI lens. Respectful practices such as asking for preferred pronouns and pronouncing names demonstrate inclusivity. Moreover, understanding legal boundaries regarding protected classes varies globally, necessitating sensitivity and awareness during interviews. For instance, an audience member noted, “It is important to identify who the protected classes are within your clientele because in every country they are different. If you ask a person in Niger if there is anything medical they need to take care of, it is a caring question. Versus asking that question in the U.S. is an inappropriate topic due to HIPPA.”

Looking Ahead: Towards Inclusive Investigations

As fraud becomes more sophisticated and globalized, integrating DEI into investigative practices becomes not only a moral imperative, but also a strategic advantage. Organizations that prioritize DEI can expect more comprehensive and accurate investigative outcomes, bolstering credibility and ethical standards.

This session served as a compelling reminder that combating fraud is not just about uncovering financial discrepancies—it is about doing so in a manner that upholds human dignity, respects cultural nuances and fosters trust. As organizations adapt to the complexities of a globalized world, embracing DEI is not just beneficial; it is essential for creating sustainable, ethical business practices.