Cfe - Financial Transactions and Fraud Schemes Free Sample Questions

Which of the following is a red flag that might indicate the existence of a need recognition scheme? A.The purchasing entity’s materials are being ordered at the optimal reorder point.B.The purchasing entity has a large list of backup suppliers.C.The purchasing entity has unusually high requirements for stock and inventory levels.D.The purchasing entity has few surplus items written off as scrap.

Which of the following is NOT a distinguishing feature of a Ponzi scheme?

Geoffrey, a homeowner, has decided to add a patio to the back of his house. Geoffrey hires a contractor who insists on receiving payment up front so that he can pay for the materials required to complete the construction. The following week, Geoffrey is surprised to learn that the contractor has not arrived and is not answering his phone calls. Geoffrey has MOST LIKELY been victimized by which of the following frauds? A.Deposit schemeB.Scavenger schemeC.Block hustle schemeD.Advance-fee scheme

Neil, a Certified Fraud Examiner (CFE), discovers that a borrower used the same property as a security, or guarantee, to obtain multiple loans from different financial institutions before they were recorded on his credit report. Which type of loan fraud BEST describes the scheme Neil uncovered? A.Single-family housing loan fraudB.Linked financingC.Double-pledging collateralD.Reciprocal loan arrangements

Which of the following is a common red flag of a bid tailoring scheme?