CERTIFIED FRAUD EXAMINERS CFE EXAMS
PACKAGE DEAL ACTUAL TEST PAPER
2026 QUESTIONS WITH ANSWERS GRADED
A+
⩥ Extortion. Answer: Acquiring through force or fear.
⩥ Current Ratio. Answer: Current assets divided by current liabilities;
Embezzlement decreases ratio; Liability concealment increases ratio.
⩥ Scooter Scam. Answer: Billing for low quality/unnecessary products.
⩥ Sliding. Answer: Adding insurance coverage without notifying client;
insurer makes more money, client makes no claims.
⩥ Debits. Answer: Increases asset/expense accounts; On the left side;
Decreases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
⩥ Credits. Answer: Decreases asset/expense accounts; On the right side;
Increases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
,⩥ Verifier. Answer: Reviews deals/records customer consent
(telemarketing); scammer verifiers lie
⩥ Bid Splitting Scheme. Answer: When a large project is broken into
small projects; Designed to avoid competitive method requirements.
⩥ Positive Pay. Answer: When banks and companies coordinate to
detect fraudulent checks.
⩥ Income Smoothing. Answer: Reporting revenues and expenses under
the wrong periods.
⩥ Turnkey. Answer: Provides telemarketing scammers with collateral
(laundering, merchandise, phone lists, etc.)
⩥ Debt to Equity Ratio. Answer: Total Liabilities/Total Equity
⩥ The largest amount of insurance fraud occurs in the ______________
industry. Answer: Health Care
⩥ The 6 types of healthcare fraud. Answer: (1) Falsified prescriptions
(2) Excessive supplies (3) Failure to deliver/billing before delivering (4)
Excessive billing (5) Billing uninsured items (6) Scooter scams
, ⩥ In construction, the purpose of developer overhead is to .... Answer:
supply the developer with operating capital.
⩥ Organization Crime. Answer: Crime committed by groups
⩥ Occupational Crime. Answer: Crime committed by individuals,
professionals, officials
⩥ Corruption (3 Types). Answer: Bribes (giving/taking), aiding, abetting
⩥ Does advertising influence economic crimes?. Answer: Yes, no one
has to settle for second best (See "Crimes of the Middle Class" book);
most defendants are male w/ moderate social status.
⩥ Overstating Revenues. Answer: When a launderer records more
income than actually generated.
⩥ Spoliation of Evidence. Answer: Destruction of evidence
⩥ The 3 stages of money laundering. Answer: Placement, Layering,
Integration
⩥ Placement. Answer: 1st stage of money laundering; Illegal profits are
placed into a financial system (Place, Layer, Integrate)
PACKAGE DEAL ACTUAL TEST PAPER
2026 QUESTIONS WITH ANSWERS GRADED
A+
⩥ Extortion. Answer: Acquiring through force or fear.
⩥ Current Ratio. Answer: Current assets divided by current liabilities;
Embezzlement decreases ratio; Liability concealment increases ratio.
⩥ Scooter Scam. Answer: Billing for low quality/unnecessary products.
⩥ Sliding. Answer: Adding insurance coverage without notifying client;
insurer makes more money, client makes no claims.
⩥ Debits. Answer: Increases asset/expense accounts; On the left side;
Decreases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
⩥ Credits. Answer: Decreases asset/expense accounts; On the right side;
Increases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
,⩥ Verifier. Answer: Reviews deals/records customer consent
(telemarketing); scammer verifiers lie
⩥ Bid Splitting Scheme. Answer: When a large project is broken into
small projects; Designed to avoid competitive method requirements.
⩥ Positive Pay. Answer: When banks and companies coordinate to
detect fraudulent checks.
⩥ Income Smoothing. Answer: Reporting revenues and expenses under
the wrong periods.
⩥ Turnkey. Answer: Provides telemarketing scammers with collateral
(laundering, merchandise, phone lists, etc.)
⩥ Debt to Equity Ratio. Answer: Total Liabilities/Total Equity
⩥ The largest amount of insurance fraud occurs in the ______________
industry. Answer: Health Care
⩥ The 6 types of healthcare fraud. Answer: (1) Falsified prescriptions
(2) Excessive supplies (3) Failure to deliver/billing before delivering (4)
Excessive billing (5) Billing uninsured items (6) Scooter scams
, ⩥ In construction, the purpose of developer overhead is to .... Answer:
supply the developer with operating capital.
⩥ Organization Crime. Answer: Crime committed by groups
⩥ Occupational Crime. Answer: Crime committed by individuals,
professionals, officials
⩥ Corruption (3 Types). Answer: Bribes (giving/taking), aiding, abetting
⩥ Does advertising influence economic crimes?. Answer: Yes, no one
has to settle for second best (See "Crimes of the Middle Class" book);
most defendants are male w/ moderate social status.
⩥ Overstating Revenues. Answer: When a launderer records more
income than actually generated.
⩥ Spoliation of Evidence. Answer: Destruction of evidence
⩥ The 3 stages of money laundering. Answer: Placement, Layering,
Integration
⩥ Placement. Answer: 1st stage of money laundering; Illegal profits are
placed into a financial system (Place, Layer, Integrate)
