Certified Financial Crimes Investigator (CFCI) Practice exam

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• Which report must U.S. financial institutions file for cash transactions exceeding a specified amount?
• Kickback schemes often utilize which deceptive practice?
• Which method of fraud involves manipulating invoices to gain unauthorized payments?
• What is ACH fraud associated with?
• What are the six key categories typically focused on in a Fraud Risk Assessment (FRA)?
• What component of the Fraud Triangle relates to financial difficulties leading to potential fraud?
• In fraud, what is the concept of "deceptive conduct by non-employees" primarily associated with?
• What type of fraud occurs when an employee alters dates or amounts on receipts?
• Which of the following is a type of fraud occurring within an organization?
• What tactic is used in check fraud intimidation?
• What tactic is often used in targeting potential financial victims in phishing scams?
• Which of the following can be a red flag for employee-level embezzlement?
• What is considered a common method for employees to commit fraud in the covered topics above?
• What is a common tactic used in cashier check fraud?
• Claiming for out-of-policy expenses typically involves which behavior?
• Which act involves the misrepresentation of financial performance through nonexistent revenue?
• What is a common outcome of employees rationalizing their fraud?
• Which of the following categories focuses on fraudulent activities performed by senior management in an FRA?
• What does asset-based or working capital loan fraud typically involve?
• In reciprocal loans, what is typically expected in return for approving a loan?
• What is the first step in preventing employee-level fraud?
• What is the primary tactic used in fraud for profit involving mortgage applications?
• What type of fraud involves falsifying receipts for transportation and business travel expenses?
• What is the main feature of Business Email Compromise scams?
• Kickback schemes generally involve:
• What added element transformed the Fraud Triangle into the Fraud Diamond?
• What does the checklist for employee-level embezzlement help identify?
• According to the data, what percentage of financial institutions reported experiencing attempted payment fraud in 2017?
• What is the goal of asset-based loan fraud?
• What is chunking in the context of mortgage fraud?
• What does C.N.P stand for?
• What are the three stages of collusion with vendors?
• What might happen if a receipt for a personal expense is complicated?
• Which of the following is NOT a type of mortgage fraud?
• What fraud is associated with the manipulation of dormant accounts?
• What does fraudulent revenue recognition typically involve?
• Why is it crucial for organizations to be aware of the management-level fraud risks?
• What is check kiting?
• What system is required for compliance under AML regulations?
• How is Purchasing Card Fraud typically conducted?
• What characterizes a dormant account?
• Identity theft refers to which of the following?
• What is the primary focus of a Fraud Risk Assessment (FRA)?
• What motivates individuals to perform theft according to rationalization concepts?
• How are shell company fraud and phony invoice fraud primarily executed?
• Which term refers to the manipulation of revenue recognition practices?
• What is a common consequence of altering employee statuses in payroll fraud?
• What does the acronym EMV stand for in card security technology?
• What practice can lead to overstating assets within financial statements?
• What does a phishing scam generally involve?
• Which category in an FRA assesses the risks associated with avoiding proper costs and expenses through deception?
• Which form of fraud is more likely to be initiated externally rather than internally?
• What does a checklist for management level fraud prevention typically include?
• What is a significant risk associated with ATM transactions in terms of fraud?
• In a Fraud Risk Assessment, which category evaluates expenses that may have been avoided through fraudulent actions?
• What characterizes "forged on-us checks"?
• What does theft and forgery of stolen checks include?
• What kind of information is particularly at risk of being stolen by insiders?
• What does an employee reimbursement scheme typically involve?
• In a Fraud Risk Assessment (FRA), which of the following is NOT a key category of fraud risks?
• What is a kickback in the context of illegal loans?
• What is a typical act of external mortgage fraud?
• What group is most likely to commit fraud within financial services organizations according to the Opportunity Element?
• What is Electronic Payee Alteration in fraud terms?
• What is the main intention behind a vehicle maintenance scheme?
• What does employee ghosting involve?
• What does the designated AML Compliance Officer primarily oversee?
• What factor does the Fraud Triangle indicate is necessary for fraudulent activity?
• Which is NOT a technique used to manipulate financial results?
• What is a key aspect of collusion with vendors?
• What tactic might an employee use to evade the minimum documentation requirements for expenses?
• Which of the following is NOT a characteristic of fraud for property?
• What does the phrase 'the numbers do not lie' suggest about financial fraud?
• Which activity does NOT typically fall under the category of insider abuse of computer systems?
• What does the term 'fence sitters' refer to in the context of the 20-60-20 rule?
• Fraud can be categorized into which of the following two types?
• What is teller theft of skimming primarily characterized by?
• How does bank employee collusion typically work?
• What is the goal of financial fraud?
• How does identity fraud typically manifest in mortgage scams?
• What are considered red flags for management level internal fraud?
• What is a common tactic in fraudulent fee reversal?
• In the context of external mortgage fraud, what critical information might be concealed?
• What is theft of confidential information typically used for?
• What is the main difference between internal and external fraud?
• What is the main goal of equity skimming?
• What is commonly referred to as "cooking the books" in a business context?
• What is the purpose of a Purchasing Card (P-Card) in relation to fraudulent activities?
• Which of the following best describes billing schemes?
• Which action is required when a transaction involves more than $10,000 in currency?
• What constitutes Accounts Payable (AP) or Billing Fraud?
• What is the primary characteristic of fraud?
• What is extortion in a business context?
• Which of the following is NOT a type of payroll fraud?
• Which fraudulent act involves the misappropriation of funds entrusted to someone?
• What kind of crime includes unauthorized withdrawals to divert customer funds?
• What is the broad definition of fraud?
• What is a key factor in the Opportunity Element of the fraud triangle?
• Why can collusion with vendors be particularly damaging?
• In what scheme are straw buyers involved, often led to believe they are receiving a good deal?
• What does skimming refer to in fraud terminology?
• What is the main purpose of money laundering?
• What is the purpose of a Currency Transaction Report (CTR)?
• What act describes an employee stealing blank checks and forging signatures to obtain funds?
• Which of the following is NOT a type of insider fraud threat?
• What does the Automated Clearing House (ACH) network primarily enable?
• What is the result of unethical behavior like kickbacks in financial services?
• Segregation of Duties (SoD) is intended to prevent what type of activity?
• What can be described as signs represented by numerical oddities?
• What is one of the factors that might indicate financial pressure leading someone to commit fraud?
• What typically happens to a victim of identity fraud after a fraudulent mortgage loan is obtained?
• What characterizes a case of duplicate payments?
• What is one consequence of identity fraud?
• Which of the following is part of the definition of a Currency Transaction Report (CTR)?
• What is a common tactic used in time card alterations?
• What does delegation of authority pertain to in financial contexts?
• Identity fraud involves:
• Which of these categories identifies risks related to financial practices that misrepresent the financial status of an organization in an FRA?
• What is the general purpose of fraud detection measures?
• What manipulation can employees with access to the Vendor Master File (VMF) engage in?
• What is the primary method used by a fraudster in tool theft?
• What does "carding" refer to in the context of financial crimes?
• What do soft indicators of fraud typically reflect?
• What type of threat do insiders pose to computer systems?
• What defines a forged check?
• How can complacency about fraud impact organizations?
• What typically results from bid-rigging schemes?
• What is the main characteristic of loans to phantom borrowers?
• Which of the following is a typical behavior associated with ghost-employees in payroll fraud?
• What do scam artists gain from equity skimming?
• What is the purpose of using nominee or straw borrowers?
• Why is an independent audit important in AML compliance?
• How does EMV chip technology enhance card security?
• What does self-dealing refer to in the context of financial management?
• What is one of the myths about fraud in financial services?
• What type of fraud involves financial misrepresentation intended to inflate stock values?
• What is the primary motive behind rationalization in fraud cases?
• What action exemplifies materials waste fraud?
• What is the primary intention of the Foreign Corrupt Practices Act (FCPA)?
• Which of the following is NOT one of the four pillars of AML compliance?
• What is a common method used by fraudsters to control funds in suspense accounts?
• Which of the following categories includes expenses incurred for improper purposes in an FRA?
• Which term describes the act of obtaining financial benefits using stolen information?
• What does bribery involve?
• What is the essence of bid-rigging schemes?
• What is a common practice in check tampering?
• Employee embezzlement can involve which of the following actions?
• What was a significant issue related to the Libor scandal?
• In product substitution fraud, what occurs?
• What constitutes illegal gratuities?
• Credit card fraud can involve:
• What are the two key categories of indicators for potential employee fraud?
• What type of document is important to verify to reduce mortgage fraud risks?
• What amount triggers the requirement for a Currency Transaction Report (CTR)?
• What method do hackers utilize in social engineering?
• What is the result of teller theft of skimming for financial institutions?
• What is the primary goal of the Bank Secrecy Act (BSA)?
• The concept of "theft" in fraud encompasses:
• What percentage of people are considered to inherently be dishonest regarding the 20-60-20 rule?
• What is a characteristic of hidden check fraud?
• What opportunity does a Certificate of Deposit (CD) provide for fraudulent activity?
• Which structure does the Fraud Triangle illustrate in relation to fraud?
• How do social engineering tactics influence individuals in fraud schemes?
• What is an organization’s assessment of the risks of being victimized by fraud known as?
• What does check interception and forgery involve?
• What is an example of fraudulent fee reversal?
• What scenario is indicative of embezzlement?
• What is a common action that indicates an opportunity for fraud within an organization?
• What type of information do organized crime rings often seek from bank employees?
• What does altering a check to change the payee's name involve?
• What type of fraud involves changing the amount of a check by manipulating its numbers?
• Which of the following practices is considered credit card fraud?
• What is the technique of overstating appraisal values used for?
• Why is it crucial to be aware of fraud risks in financial institutions?
• Which type of fraud is committed less frequently but results in greater financial loss?
• In a vehicle maintenance scheme, what is a common fraudulent practice?
• What does deception in fraud typically involve?
• How can management manipulate liabilities to distort financial results?
• Which scenario best illustrates product substitution?
• What is asset-based loan fraud commonly referred to as?
• Failure to mark investments to market during market decline can lead to what?
• In terms of financial performance, what is recording false revenues intended to achieve?
• What is the definition of hard indicators in the context of fraud?
• Which method may be used by an employee to test anti-fraud controls regarding expenses?
• What is the role of non-employees in external fraud?
• What type of items are typically involved in theft of consignment items?
• What does loan lapping involve in the context of fraud?
• What defines linked financing in loan fraud?
• What comprehensive approach should be taken to prevent employee-level fraud?
• What method does a fraudster use in the case of employee ghosting?
• What organizational action is essential to reduce vulnerability to fraud?
• What does the category of financial misconduct specifically relate to in a Fraud Risk Assessment?