Founded in 1981, following the passage of The State Employer/Employee Relations Act (SEERA), the California Association of Fraud Investigators (CAFI) was incorporated as a Non-Profit Mutual Benefit Association in 1985.

CAFI is a unique affiliate of the California Statewide Law Enforcement Association (CSLEA) Instead of representing one department, as do most all the other affiliates, CAFI represents investigators in eleven different departments, both sworn and non-sworn. Sworn personnel with CAFI fall under Penal code 830.3, and to date, the only sworn peace officers to carry firearms are those with the California Horse Racing Board. The non-sworn personnel fall under Penal Code 830.11 and have the powers of a peace officer, but are not considered peace officers. Currently, 63% of the CAFI membership is sworn, and 37% is non-sworn. Ten directors represent one or more of these departments and are elected to serve two-year terms by the membership.