CFE Exam - Financial and Fraud Schemes Questions and Answers
6 views 0 purchase
Course
CFE
Institution
CFE
Illegal gratuity
o :## Items to reward a decision after the recipient made the decision. Like a
bribe
Extortion
o :## getting money by threats
Economic extortion
o :## When employee demands money through threats
Kickbacks
o :## Improper undisclosed payments made to obtain favorable treatme...
CFE Exam - Financial and Fraud Schemes Questions and
Answers
Illegal gratuity
o :## Items to reward a decision after the recipient made the decision. Like a
bribe
Extortion
o :## getting money by threats
Economic extortion
o :## When employee demands money through threats
Kickbacks
o :## Improper undisclosed payments made to obtain favorable treatment
Three ways to prove corrupt payments
o :## 1. Turn an inside witness
2. Secretly infiltrate ongoing transactions
3. Identify and trace corrupt payments through audit trail
Inventory shrinkage
, 2024/2025 2|Page
o :## Loss of inventory resulting from error or theft.
T/F: Falsely increasing perpetual inventory would only worsen the inventory shrinkage
problem
o :## True. Without manipulating the perpetual, inventory is already overstated.
Increasing it even more will create a larger difference to the sheet vs. floor
Insurance Premium Fraud
o :## Lying about certain information to insurer for a lower premium
Insurance Agent Fraud
o :## An agent would steal part of the insurance premium from the insured client.
Probably by charging the client more than the insurer is asking for.
Insurance Claimant Fraud
o :## Misrepresenting the circumstance of an injury to get a higher claim.
Organized Insurance Fraud
o :## United efforts of a lawyer, capper, a doctor, and claimant. Used in worker's
compensation fraud and medical fraud.
Ditching
, 2024/2025 3|Page
o :## Getting rid of a car to collect on an insurance policy to settle an outstanding
loan.
Sliding
o :## Including additional coverage in an insurance policy without the insured's
knowledge. This creates higher premium.
Past Posting
o :## First there is an accident. Then the person buys insurance, then waits a little
bit then claims on the accident.
Insurance agent fraud - premium fraud
o :## Agent collects on a premium but does not give to the insurer.
Insurance agent fraud - fictitious payee fraud
o :## Agent changes beneficiary on record to a fictitious person
Insurance agent fraud - fictitious death claims
o :## Agent obtains fake death certificate and requests death claim. The agent
steals the payment
Indemnity Bond
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamArsenal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
