Online Access Free CFE-Financial-Transactions-and-Fraud-Schemes Exam Questions

Hannah is a manager at a financial institution. To safeguard the bank and its customers from electronic funds transfer (EFT) fraud, Hannah is implementing several preventive measures. Which of the following is NOT a measure Hannah should take to prevent EFT fraud?

• A.Mail PINs and other associated account information together to reduce the chance of those items being lost during transit.
• B.If a customer reports the loss or theft of an access device, then cancel the existing card, PIN, or other form of access and issue a new one.
• C.Send a welcome letter to new customers to determine if the address submitted on the account application is valid.
• D.Separate the duties of bank employees so that the responsibilities for the issuance of access devices are separate from the issuance of PINs.

All the following are basic methods used to prove corrupt payments in corruption schemes EXCEPT:

• A.Using an inside witness
• B.Secretly infiltrating ongoing transactions
• C.Identifying and tracing payments through audit steps
• D.Making inquiries to the relevant Administration of Taxation

A fraudster uses a victim's name, government identification number, and birthdate to impersonate the victim and open a credit card account in the victim's name. This scheme can BEST be described as:

• A.Criminal identity theft
• B.Synthetic identity theft
• C.New account identity theft
• D.Traditional identity theft

Which of the following is TRUE regarding pyramid schemes?

• A.The goal that participants of pyramid schemes have is to sell worthless products to friends and family
• B.All pyramid organizational structures are illegal
• C.An illegal pyramid scheme is modeled to pay off its earliest investors but not its later investors
• D.None of the above

Which of the following scenarios is an example of upcoding?

• A.Dr. Catz spends 15 minutes with a patient. She later submits a bill to the patient's insurance company using a code that corresponds to an office visit lasting 60 minutes.
• B.Dr. Smith performed a hysterectomy on Roberta. Dr. Smith submits an insurance claim using three procedure codes instead of the single code normally used for a hysterectomy.
• C.Hope is diagnosed with an ear infection. Hope's doctor writes her a prescription for a name brand medication instead of prescribing a less expensive generic medication.
• D.Steven receives medical services prior to his new insurance going into effect. Before submitting the claim, he changes the service date on his bill so that it will be covered by insurance.