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CFCI Study Guide – Updated With Correct Answers.
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CFCI Study Guide – Updated With Correct Answers.
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CFCI Study Guide –Updated With Correct
Answers
Fraud b- b(CORRECT bANSWER)-"Any billegal bacts bcharacterized bby bdeceit, bconcealment, bor
b violation bof btrust. bThese bacts bare bnot bdependent bupon bthe bperpetrated bby bindividuals
b and borganizations bto bobtain bmoney, bproperty, bor bservices; bto bavoid bpayment bor bloss bof
b services; bor bto bsecure bpersonal bor bbusiness bad-vantage."
Main btypes bof bfraud b- b(CORRECT bANSWER)-Internal bFraud band bExternal bFraud
Internal bFraud b- b(CORRECT bANSWER)-Activities bthat bmay bbe bcriminal, bcommitted bwithin
b an borganization, btypically bby bthe bemployee bagainst bthe bemployer.
External bFraud b- b(CORRECT bANSWER)-Deceptive bconduct bby bnon-employees bthat
deprives bthe borganization bof bvalue, band/or bis bundertaken bfor bfinancial bgain.
,Embezzlement b- b(CORRECT bANSWER)-The btheft bof bmoney, bproperty, bor bother bassets bof
b the bemployer.
Larceny b- b(CORRECT bANSWER)-The btaking baway bof bthe bproperty bof banother, bwith bthe
b intent bto bconvert bit bto bhis/her bown buse.
Financial bFraud b- b(CORRECT bANSWER)-"Cooking bthe bbooks." bThis btype bof bfraud bgenerally
b refers bto bfalsely brepresenting bthe bfinancial bcondition bof bthe bcompany, bso bas bto binflate bthe
b value bof bstock, bfraudulently bboost bexecutive bbonuses, bor botherwise bmislead bshareholders,
b lenders, bemployees, binvestment banalysts, bor bother busers bof bthe binformation.
Skimming b(cash blarceny) b- b(CORRECT bANSWER)-Accounts breceivable bfraud, bthis binvolves
b simply bstealing bcash bbefore bit benters bthe borganization's baccounting bsystem.
Billing bSchemes b- b(CORRECT bANSWER)-Using bfalse bdocumentation bto bcause ba btargeted
b organization bto bissue ba bpayment bfor bfalse bservices band/or bpurchases.
Check bTampering b- b(CORRECT bANSWER)-Common bmethod b(Taking badvantage bof
b employee baccess bto bblank bcompany bchecks, busing ba bpassword bto
steal bcomputer-generated bchecks bor bproducing bcounterfeit bchecks).
,Employee breimbursement bscheme b- b(CORRECT bANSWER)-Making bfalse bclaims bfor
b reimbursement bor binflating bor bcreating bfictitious bbusiness bexpenses. b(Travel b/meal
b reimbursement.
Corruption b- b(CORRECT bANSWER)-Bribery, billegal bgratuities, band/or bextortion.
Bribery b- b(CORRECT bANSWER)-When bsomething bof bvalue bis boffered bor bgiven bto binfluence
b a bbusiness bdecision.
Illegal bGratuities b- b(CORRECT bANSWER)-When bsomething bof bvalue bis bgiven bto ban
b employee bto breward ba bbusiness bdecision.
Extortion b- b(CORRECT bANSWER)-When ba bperson bdemands bpayment bor bseeks bto binfluence
b a bbusiness bdecision bby bthreat bof bharm bthrough bloss bof bbusiness bor bpersonal binjury.
Kickback bSchemes b- b(CORRECT bANSWER)-Forms bof bcorruption binvolving bemployees band
b vendors, boften busing binflated bbilling bor binvoices bfor bwhich bthe bemployee bis bpaid ba
b portion bof bthe binflated bor bfictitious binvoice.
Credit bCard bFraud b- b(CORRECT bANSWER)-The bcreation, bsale, bor buse bof ba bcounterfeit
b credit bcard, bor bthe buse bof ba bstolen bcredit bor bdebit bcard.
C.N.P b- b(CORRECT bANSWER)-Card bnot bpresent btransactions
, Identity bTheft b- b(CORRECT bANSWER)-The bfraudulent bacquisition bor bstealing bof
b confidential bpersonal binformation bthrough bsocial bengineering.
Identity bFraud b- b(CORRECT bANSWER)-Involves bthe bunauthorized buse bof banother bperson's
b personal bdata bfor billegal bfinancial bbenefit. bInvolves babusing bthe bstolen binformation bto
b transact bpersonal bbusiness bin bthe bvictim's bname.
Wildcat bBanking b- b(CORRECT bANSWER)-An bextreme bform bof bwhat bwas bcalled bfree
b banking. b"A bbank bthat bissued bnotes bwithout badequate bsecurity bin bthe bperiod bbefore bthe
b establishment bof bthe bnational bbanking bsystem bin b1864".
2 bcategories bthat bencompass bFraud b- b(CORRECT bANSWER)-Theft b(stealing bmoney, bID, bor
b assets) band bdeception b(cooking bthe bbooks, blying bto bshareholders, bemployees bor bpartners)
Savings band bLoan bCrisis b- b(CORRECT bANSWER)-The bfailure bof babout b1000 bsavings band
b loan bbanks bas ba bresult bof brisky bbusiness bpractices. bThe broots bof bthe bS&L bcrisis blay bin
b excessive blending, bspeculation, band brisk-taking bdriven bby bthe bmoral bhazard bcreated bby
b deregulation band btaxpayer bbailout bguarantees.
Myth b#1 bof bthe bFinancial bServices b- b(CORRECT bANSWER)-"We bhave bvery blittle bfraud
b here" bex: bsubprime bmortgage bfraud
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