FOR3705
Assignment 2 Semester 2 2026
Unique number:
Due date: September 2026
QUESTION 1
Financial Profile and Behavioural Profile in Financial Crime Detection
In financial crime investigations, fraud examiners use profiling methods to organise
information about a suspect and to test whether the person’s financial position and
lifestyle are consistent with legitimate income. The financial profile and behavioural
profile both contribute to this purpose, but they examine different types of information
and are most useful in different circumstances. The prescribed material explains that
a personal profile is made up of financial and behavioural information, with the two
profiles working together to present a fuller picture of the subject’s financial condition
and lifestyle (Association of Certified Fraud Examiners [ACFE], 2020, pp. 3.944–
3.949). The FOR3705 study guide similarly treats these profiles as complementary
tools used to establish financial standing and lifestyle habits during financial
,QUESTION 1
Financial Profile and Behavioural Profile in Financial Crime Detection
In financial crime investigations, fraud examiners use profiling methods to organise
information about a suspect and to test whether the person’s financial position and
lifestyle are consistent with legitimate income. The financial profile and behavioural
profile both contribute to this purpose, but they examine different types of information
and are most useful in different circumstances. The prescribed material explains that
a personal profile is made up of financial and behavioural information, with the two
profiles working together to present a fuller picture of the subject’s financial condition
and lifestyle (Association of Certified Fraud Examiners [ACFE], 2020, pp. 3.944–
3.949). The FOR3705 study guide similarly treats these profiles as complementary
tools used to establish financial standing and lifestyle habits during financial
investigations (Van Graan and Zinn, 2021, pp. 16–18).
Financial Profile
A financial profile is a structured analysis of a suspect’s financial position over a
particular period. It operates in a manner similar to an individual financial statement
because it records what the person earns, owns, owes and spends, which means
that the main elements are income, expenses, assets and liabilities (ACFE, 2020, p.
3.944). The profile therefore concentrates on measurable financial information and
allows the investigator to see where money is coming from and where it is being
used. This information is important because unexplained differences between
legitimate income and accumulated wealth can provide direct or circumstantial
indications of hidden income or unlawful financial activity (ACFE, 2020, pp. 3.944–
3.945).
The purpose of the financial profile is to identify inappropriate financial activity and
determine whether the suspect’s visible wealth can reasonably be explained by
lawful income. Fraud examiners normally build the profile from financial records, tax
information, accounting records and payroll records, although public records,
interviews, observations, online information and other circumstantial material can
also be used when direct records are incomplete (ACFE, 2020, p. 3.945). The study
guide confirms that investigators may use interviews with the subject and associates,
, observations of lifestyle and assets, public records, online resources and other
circumstantial information to infer financial standing (Van Graan and Zinn, 2021, p.
16).
The key analytical steps are to identify significant assets, liabilities, lawful income
sources and significant expenses, assign values to those items and then analyse the
resulting financial picture. These steps make it possible to compare the suspect’s
legitimate resources with changes in wealth and spending during the investigation
period (Van Graan and Zinn, 2021, pp. 16–17). For example, where a procurement
manager is suspected of receiving kickbacks, unexplained asset growth, large
deposits or expenditure that cannot be supported by salary and other legitimate
income may direct the investigation towards bribery, corruption or embezzlement
(ACFE, 2020, pp. 3.944–3.950).
Behavioural Profile
A behavioural profile focuses on the suspect’s observable personal characteristics,
lifestyle habits and spending behaviour rather than relying mainly on formal financial
records. It is especially valuable where the financial profile contains gaps, because
outside information can support estimates and point the investigator towards assets
or income that do not appear in the known records (ACFE, 2020, p. 3.948). The
behavioural profile therefore complements the financial profile instead of replacing it,
and it can be particularly useful for identifying smaller cash activities and lifestyle
expenditure that may not be visible in ordinary financial documentation (ACFE, 2020,
pp. 3.948–3.949).
Important behavioural indicators include carrying unusually large amounts of cash,
wearing designer clothing and expensive jewellery, belonging to exclusive clubs,
living in costly housing, owning valuable furnishings, driving luxury vehicles and
engaging in expensive leisure activities such as international holidays, cruises,
boating or private aviation (Van Graan and Zinn, 2021, pp. 17–18). These
observations help investigators assess whether the subject appears to be living
beyond their apparent means. If the lifestyle cannot be reconciled with known
income or bank withdrawals, the behaviour may point to hidden wealth, undisclosed
Assignment 2 Semester 2 2026
Unique number:
Due date: September 2026
QUESTION 1
Financial Profile and Behavioural Profile in Financial Crime Detection
In financial crime investigations, fraud examiners use profiling methods to organise
information about a suspect and to test whether the person’s financial position and
lifestyle are consistent with legitimate income. The financial profile and behavioural
profile both contribute to this purpose, but they examine different types of information
and are most useful in different circumstances. The prescribed material explains that
a personal profile is made up of financial and behavioural information, with the two
profiles working together to present a fuller picture of the subject’s financial condition
and lifestyle (Association of Certified Fraud Examiners [ACFE], 2020, pp. 3.944–
3.949). The FOR3705 study guide similarly treats these profiles as complementary
tools used to establish financial standing and lifestyle habits during financial
,QUESTION 1
Financial Profile and Behavioural Profile in Financial Crime Detection
In financial crime investigations, fraud examiners use profiling methods to organise
information about a suspect and to test whether the person’s financial position and
lifestyle are consistent with legitimate income. The financial profile and behavioural
profile both contribute to this purpose, but they examine different types of information
and are most useful in different circumstances. The prescribed material explains that
a personal profile is made up of financial and behavioural information, with the two
profiles working together to present a fuller picture of the subject’s financial condition
and lifestyle (Association of Certified Fraud Examiners [ACFE], 2020, pp. 3.944–
3.949). The FOR3705 study guide similarly treats these profiles as complementary
tools used to establish financial standing and lifestyle habits during financial
investigations (Van Graan and Zinn, 2021, pp. 16–18).
Financial Profile
A financial profile is a structured analysis of a suspect’s financial position over a
particular period. It operates in a manner similar to an individual financial statement
because it records what the person earns, owns, owes and spends, which means
that the main elements are income, expenses, assets and liabilities (ACFE, 2020, p.
3.944). The profile therefore concentrates on measurable financial information and
allows the investigator to see where money is coming from and where it is being
used. This information is important because unexplained differences between
legitimate income and accumulated wealth can provide direct or circumstantial
indications of hidden income or unlawful financial activity (ACFE, 2020, pp. 3.944–
3.945).
The purpose of the financial profile is to identify inappropriate financial activity and
determine whether the suspect’s visible wealth can reasonably be explained by
lawful income. Fraud examiners normally build the profile from financial records, tax
information, accounting records and payroll records, although public records,
interviews, observations, online information and other circumstantial material can
also be used when direct records are incomplete (ACFE, 2020, p. 3.945). The study
guide confirms that investigators may use interviews with the subject and associates,
, observations of lifestyle and assets, public records, online resources and other
circumstantial information to infer financial standing (Van Graan and Zinn, 2021, p.
16).
The key analytical steps are to identify significant assets, liabilities, lawful income
sources and significant expenses, assign values to those items and then analyse the
resulting financial picture. These steps make it possible to compare the suspect’s
legitimate resources with changes in wealth and spending during the investigation
period (Van Graan and Zinn, 2021, pp. 16–17). For example, where a procurement
manager is suspected of receiving kickbacks, unexplained asset growth, large
deposits or expenditure that cannot be supported by salary and other legitimate
income may direct the investigation towards bribery, corruption or embezzlement
(ACFE, 2020, pp. 3.944–3.950).
Behavioural Profile
A behavioural profile focuses on the suspect’s observable personal characteristics,
lifestyle habits and spending behaviour rather than relying mainly on formal financial
records. It is especially valuable where the financial profile contains gaps, because
outside information can support estimates and point the investigator towards assets
or income that do not appear in the known records (ACFE, 2020, p. 3.948). The
behavioural profile therefore complements the financial profile instead of replacing it,
and it can be particularly useful for identifying smaller cash activities and lifestyle
expenditure that may not be visible in ordinary financial documentation (ACFE, 2020,
pp. 3.948–3.949).
Important behavioural indicators include carrying unusually large amounts of cash,
wearing designer clothing and expensive jewellery, belonging to exclusive clubs,
living in costly housing, owning valuable furnishings, driving luxury vehicles and
engaging in expensive leisure activities such as international holidays, cruises,
boating or private aviation (Van Graan and Zinn, 2021, pp. 17–18). These
observations help investigators assess whether the subject appears to be living
beyond their apparent means. If the lifestyle cannot be reconciled with known
income or bank withdrawals, the behaviour may point to hidden wealth, undisclosed
