CFE - Financial Transactions and Fraud Schemes

CFE - Financial Transactions and Fraud Schemes practice questions, page 5 of 10, with answer review and explanations.

Question 21

Which of the following statements regarding new account fraud is MOST ACCURATE?

  1. Mobile deposits are at high risk for new account fraud because face-to-face transactions are not required.
  2. Automated teller machines (ATMs) are rarely targets of new account fraud because most have cameras installed.
  3. Fraud is more likely to occur in established accounts than in accounts that have been newly opened.
  4. New account fraud can be defined as any fraud that occurs on an account within the first year that it is open.

Question 22

Which of the following is a method of identity theft prevention recommended for individuals?

  1. Install security updates and patches for personal computers every six months.
  2. Avoid the use of biometric authentication to ensure the security of fingerprints, voice patterns, and other identifying information.
  3. Do not reuse the same answers to security questions for more than two accounts.
  4. Create passwords that are at least eight characters long and contain a combination of letters, numbers, and symbols.

Question 23

Which of the following statements is MOST ACCURATE regarding the methods used for making corrupt payments in corruption schemes?

  1. Payers cannot make corrupt payments by providing loans to recipients.
  2. Payers cannot pay off a recipient’s credit card debt because of anti-money laundering rules.
  3. Payers can make corrupt payments by giving recipients hidden interests in profit-making enterprises.
  4. Payers often make corrupt payments by selling property to recipients at prices higher than the property’s market value.

Question 24

Accounts receivable that never get collected are a common sign of fictitious revenue schemes.

  1. True
  2. False

Question 25

When an employee processes a fictitious refund of goods, the victim company’s inventory is overstated.

  1. True
  2. False