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NYC Associate Fraud Investigator Exam Prep Study Guide | New York City Civil Service
Associate Fraud Investigator Examination | Practice Questions with Detailed Answers &
Explanations | Digital PDF Download
1. A key element in proving fraud is demonstrating that the defendant had the specific intent to deceive.
This is known legally as:
A) Negligence
B) Scienter
C) Recklessness
D) Duress
Scienter is the legal term for the intent to deceive or act with knowledge of the falsity, which is a
cornerstone of fraud.
2. During a fraud examination, the discovery of unexplained wealth in a low-income individual’s bank
account would most likely be categorized as a:
A) Red flag or anomaly
B) Confession of guilt
C) Prima facie case
D) Hearsay evidence
Red flags are indicators or anomalies that suggest the possibility of fraud and warrant further
investigation.
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3. The civil standard of proof required for the city to prevail in a fraud recovery lawsuit is:
A) Beyond a reasonable doubt
B) Clear and convincing evidence
C) Preponderance of the evidence
D) Probable cause
The preponderance of the evidence standard, meaning more likely than not, is the civil standard for
recovery.
4. When reviewing an applicant’s financial documents, an inconsistency between stated income and
bank deposits is a primary indicator of potential:
A) Identity theft
B) Material misrepresentation
C) Collusion
D) Embezzlement
This inconsistency is a classic example of a material misrepresentation made to qualify for a benefit or
contract.
5. The most effective initial step to prevent fraud within a city agency is to establish a robust:
A) Internal control system
B) Whistleblower hotline
C) Punitive termination policy
D) Employee training video
A strong internal control system is the foundational defense against fraud, as it prevents and detects
errors and irregularities.
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6. A fraud investigator’s primary goal when conducting a covert operation is:
A) To gather information without alerting the subject
B) To secure an immediate arrest
C) To intimidate the suspect into confessing
D) To publicize the investigation
Covert operations are designed to collect evidence and intelligence discreetly to protect the integrity of
the investigation.
7. In the context of contract fraud, the term "bid-rigging" refers to:
A) Submitting a bid that is higher than the market value
B) An agreement among competitors to manipulate the bidding process
C) Falsifying a company's financial statement
D) An employee stealing office supplies
Bid-rigging is a form of collusion where bidders agree who will win the contract, often by submitting
complementary or cover bids.
8. Which federal law is most relevant to a fraud investigator for obtaining financial records from a bank?
A) The Patriot Act
B) The Right to Financial Privacy Act
C) The Gramm-Leach-Bliley Act
D) The Fair Credit Reporting Act
The Right to Financial Privacy Act (RFPA) establishes specific procedures for government agencies to
obtain a customer's financial records from a financial institution.
9. A sworn statement given outside a courtroom, often used during the investigative phase, is called a(n):
A) Affidavit
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B) Deposition
C) Interrogation
D) Subpoena
An affidavit is a written statement of fact made under oath before a notary or other official, often used as
evidence.
10. An investigator who alters a report to make the evidence appear stronger has committed:
A) Administrative error
B) Official misconduct
C) Perjury
D) A lawful editing practice
Official misconduct involves the abuse of one's official position, which includes falsifying records or
reports.
11. The central law in New York governing public employees' ethical conduct is the:
A) New York State Civil Service Law
B) New York City Charter
C) Public Officers Law (Chapter 47)
D) Penal Law (Chapter 40)
The Public Officers Law, particularly the ethics provisions, sets standards of conduct for public officials
and employees.
12. A key distinguishing factor between fraud and theft is that fraud:
A) Always involves a breach of trust
B) Involves a material false representation
C) Is always a felony
NYC Associate Fraud Investigator Exam Prep Study Guide | New York City Civil Service
Associate Fraud Investigator Examination | Practice Questions with Detailed Answers &
Explanations | Digital PDF Download
1. A key element in proving fraud is demonstrating that the defendant had the specific intent to deceive.
This is known legally as:
A) Negligence
B) Scienter
C) Recklessness
D) Duress
Scienter is the legal term for the intent to deceive or act with knowledge of the falsity, which is a
cornerstone of fraud.
2. During a fraud examination, the discovery of unexplained wealth in a low-income individual’s bank
account would most likely be categorized as a:
A) Red flag or anomaly
B) Confession of guilt
C) Prima facie case
D) Hearsay evidence
Red flags are indicators or anomalies that suggest the possibility of fraud and warrant further
investigation.
,2|Page
3. The civil standard of proof required for the city to prevail in a fraud recovery lawsuit is:
A) Beyond a reasonable doubt
B) Clear and convincing evidence
C) Preponderance of the evidence
D) Probable cause
The preponderance of the evidence standard, meaning more likely than not, is the civil standard for
recovery.
4. When reviewing an applicant’s financial documents, an inconsistency between stated income and
bank deposits is a primary indicator of potential:
A) Identity theft
B) Material misrepresentation
C) Collusion
D) Embezzlement
This inconsistency is a classic example of a material misrepresentation made to qualify for a benefit or
contract.
5. The most effective initial step to prevent fraud within a city agency is to establish a robust:
A) Internal control system
B) Whistleblower hotline
C) Punitive termination policy
D) Employee training video
A strong internal control system is the foundational defense against fraud, as it prevents and detects
errors and irregularities.
,3|Page
6. A fraud investigator’s primary goal when conducting a covert operation is:
A) To gather information without alerting the subject
B) To secure an immediate arrest
C) To intimidate the suspect into confessing
D) To publicize the investigation
Covert operations are designed to collect evidence and intelligence discreetly to protect the integrity of
the investigation.
7. In the context of contract fraud, the term "bid-rigging" refers to:
A) Submitting a bid that is higher than the market value
B) An agreement among competitors to manipulate the bidding process
C) Falsifying a company's financial statement
D) An employee stealing office supplies
Bid-rigging is a form of collusion where bidders agree who will win the contract, often by submitting
complementary or cover bids.
8. Which federal law is most relevant to a fraud investigator for obtaining financial records from a bank?
A) The Patriot Act
B) The Right to Financial Privacy Act
C) The Gramm-Leach-Bliley Act
D) The Fair Credit Reporting Act
The Right to Financial Privacy Act (RFPA) establishes specific procedures for government agencies to
obtain a customer's financial records from a financial institution.
9. A sworn statement given outside a courtroom, often used during the investigative phase, is called a(n):
A) Affidavit
, 4|Page
B) Deposition
C) Interrogation
D) Subpoena
An affidavit is a written statement of fact made under oath before a notary or other official, often used as
evidence.
10. An investigator who alters a report to make the evidence appear stronger has committed:
A) Administrative error
B) Official misconduct
C) Perjury
D) A lawful editing practice
Official misconduct involves the abuse of one's official position, which includes falsifying records or
reports.
11. The central law in New York governing public employees' ethical conduct is the:
A) New York State Civil Service Law
B) New York City Charter
C) Public Officers Law (Chapter 47)
D) Penal Law (Chapter 40)
The Public Officers Law, particularly the ethics provisions, sets standards of conduct for public officials
and employees.
12. A key distinguishing factor between fraud and theft is that fraud:
A) Always involves a breach of trust
B) Involves a material false representation
C) Is always a felony
