CFE COMPREHENSIVE EXAM STUDY GUIDE
TEST PAPER QUESTIONS AND SOLUTIONS
2026
◉ Agent Fraud
Answer: consist primarily of pilfering premiums and conspiring to
reduce premiums. Underhanded agents sometimes issue certificates
of coverage to the ostensibly insured customer while
misappropriating the premium rather than forwarding it to the
insurance carrier. Agents might also conspire to alter or improperly
influence insurance applications to offer lower premiums to their
clients.
◉ primary purpose of an automated clearing house (ACH) filter
Answer: It enables account holders to provide their banks with a list
of criteria to ensure only designated individuals get paid.
◉ two methods for recognizing revenue on long-term construction
contracts
Answer: completed-contract method or the percentage-of-
completion method
◉ Lapping
, Answer: The method of concealing a receivables skimming scheme
whereby one customer account is credited for a payment that was
intended for another account
◉ Card Skimming or Shimming
Answer: requires a device, often referred to as a skimmer, wedge, or
shimmer, that scans and stores a large amount of credit and debit
card numbers; skimmers scan magnetic strips, while shimmers read
microchips in smart cards. Card skimming or shimming is more
frequent in businesses where an employee is able to remove the
card from the customer's view to process the transaction before
returning it to the customer.
◉ Unscrupulous Debt Consolidation Schemes
Answer: often involve the agency collecting the money from the
debtor but not forwarding it to the creditors. In some instances,
considerable time can pass before the debtor finds out that their
money has been misappropriated. Another variation of this scheme
occurs when customers are guaranteed that they will receive a loan
or a credit card regardless of their credit rating. Typically, the
victims have been rejected by legitimate financial institutions
because their credit ratings are poor. The victim must pay a
processing fee for the application to be accepted. After the victim
pays the fee, the con artist disappears. In these schemes: The debt
consolidation company charges an up-front processing fee and then
disappears, the debt consolidation company guarantees the debtor
will receive a loan or credit card regardless of the debtor's credit
TEST PAPER QUESTIONS AND SOLUTIONS
2026
◉ Agent Fraud
Answer: consist primarily of pilfering premiums and conspiring to
reduce premiums. Underhanded agents sometimes issue certificates
of coverage to the ostensibly insured customer while
misappropriating the premium rather than forwarding it to the
insurance carrier. Agents might also conspire to alter or improperly
influence insurance applications to offer lower premiums to their
clients.
◉ primary purpose of an automated clearing house (ACH) filter
Answer: It enables account holders to provide their banks with a list
of criteria to ensure only designated individuals get paid.
◉ two methods for recognizing revenue on long-term construction
contracts
Answer: completed-contract method or the percentage-of-
completion method
◉ Lapping
, Answer: The method of concealing a receivables skimming scheme
whereby one customer account is credited for a payment that was
intended for another account
◉ Card Skimming or Shimming
Answer: requires a device, often referred to as a skimmer, wedge, or
shimmer, that scans and stores a large amount of credit and debit
card numbers; skimmers scan magnetic strips, while shimmers read
microchips in smart cards. Card skimming or shimming is more
frequent in businesses where an employee is able to remove the
card from the customer's view to process the transaction before
returning it to the customer.
◉ Unscrupulous Debt Consolidation Schemes
Answer: often involve the agency collecting the money from the
debtor but not forwarding it to the creditors. In some instances,
considerable time can pass before the debtor finds out that their
money has been misappropriated. Another variation of this scheme
occurs when customers are guaranteed that they will receive a loan
or a credit card regardless of their credit rating. Typically, the
victims have been rejected by legitimate financial institutions
because their credit ratings are poor. The victim must pay a
processing fee for the application to be accepted. After the victim
pays the fee, the con artist disappears. In these schemes: The debt
consolidation company charges an up-front processing fee and then
disappears, the debt consolidation company guarantees the debtor
will receive a loan or credit card regardless of the debtor's credit
