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NYC Associate Fraud Investigator EXAM QUESTIONS AND
CORRECT VERIFIED SOLUTIONS LATEST UPDATE THIS YEAR –
JUST RELEASED
NYC Associate Fraud Investigator Exam
10-LINE EXAM COVERAGE IN POINTS FORM
1. Job Duties & Scope – Supervising complex fraud investigations involving social benefit
programs (SNAP, Medicaid, housing), tax laws, procurement, payroll, timekeeping;
preparing/issuing summonses for parking violations (DOF only); developing cases from
allegation to administrative hearing or criminal referral .
2. Eligibility & Qualification Pathways – Four pathways: high school + 5 yrs investigative
experience (1 yr supervisory/administrative); associate degree + 3 yrs experience;
bachelor's degree + 2 yrs experience; or equivalent combination; 30 semester credits
substitute for 1 yr experience; administrative capacity means authority to make critical
decisions .
3. Examination Scoring – Open-competitive exam: multiple-choice test determines 100%
of score; promotion exam: 85% test score + 15% seniority (70 + 0.5 point per 3 months
continuous service, max 15 yrs); passing score 70% required for all candidates .
4. Test Domains – General investigative tasks and supervision; principles and techniques of
investigation; civil and criminal justice systems knowledge; ethical conduct standards
including Mayor's Executive Order No. 1978; analytical thinking; quantitative analysis;
judgment and decision-making; planning and organizing; personnel management;
written expression .
5. Fraud Schemes & Detection – Benefit fraud (SNAP income omission, Medicaid dual
enrollment, housing subletting); payroll fraud (ghost employees, time theft, overtime
padding); procurement fraud (bid rigging, vendor collusion, kickbacks, conflict of
interest); financial statement manipulation; red flags include missing records, unusual
transactions, identical contact info among competing bidders, invoice patterns .
6. Evidence & Documentation – Chain of custody essential for admissibility; documentary
evidence (bank statements, cancelled checks, time records) most reliable; electronic
evidence requires authentication (witness testimony to genuineness); obtaining records
without proper legal process (subpoena) violates lawful access and chain of custody;
preserve original data integrity for digital evidence .
7. Investigation Procedures – Initial step: obtain time records and surveillance logs for
comparison before confronting subject; cross-check official records (postal service
change-of-address, DMV) to verify residency; data analytics and hash functions for
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duplicate detection; use open-ended questions in interviews; document all investigative
decisions to ensure accountability and transparency .
8. Legal Framework – Criminal Law – Grand larceny 4th degree (NY Penal Law §155.30):
property value exceeds $1,000; petit larceny: value ≤ $1,000; NYC conflict of interest law
prohibits public servants from using position to benefit relatives through city contracts;
evidentiary standards: preponderance (civil) vs. beyond reasonable doubt (criminal);
Weingarten rights allow union representation during investigatory interviews .
9. Ethics & Professional Conduct – Accepting gratuities from subjects (even coffee) violates
ethics rules; impartial judgment required; maintain confidentiality of sensitive
information; recuse self from investigations involving personal connections; avoid
unsupported accusations; due process ensures fair and legal procedures; conflict of
interest is primary ethical concern when employee approves invoices for spouse-owned
company .
10. Special Requirements (DOF Only) – Peace Officer status requires good moral character;
U.S. citizenship required at appointment; valid NY State driver license (maintained
throughout employment); medical, physical, psychological examination; drug screening;
training certification and annual recertification required .
50 NGN-STYLE PRACTICE QUESTIONS WITH RATIONALES
QUESTION 1
A city employee claims 40 hours of overtime on their timesheet, but surveillance footage shows
them at a movie theater for 6 of those hours. What is the best initial step in this investigation?
A) Confront the employee immediately about the discrepancy
B) Write a final report recommending termination
C) Obtain time records and surveillance logs for comparison
D) Ignore the discrepancy as it is a minor amount
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Correct Answer: C
Rationale: Comparing time records with surveillance logs creates objective evidence of potential
payroll fraud before any interview. Documentation and evidence gathering should precede
confrontation to build a strong case. Confrontation without evidence may alert the subject and
compromise the investigation. A final report would be premature without thorough evidence
analysis. Ignoring the discrepancy would constitute negligence in the investigator's duties. The
systematic approach of gathering objective evidence first is a fundamental investigative
principle .
QUESTION 2
During a SNAP interview, an applicant states they have no job, but their social media shows
them bragging about "under-the-table" construction work. This is an example of which type of
fraud?
A) Identity theft
B) Failure to report income – fraud
C) Clerical error
D) Housing fraud
Correct Answer: B
Rationale: Intentional omission of income to qualify for benefits is fraud, not a mistake, and is a
core SNAP violation. The applicant knowingly failed to report income to maintain eligibility for
benefits they would not otherwise qualify for. This is not identity theft, clerical error, or housing
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fraud; it is a deliberate deception to secure unlawful gain from a public benefit program.
Investigators must distinguish between intentional deception and honest errors .
QUESTION 3
You discover a vendor invoice that was paid twice. The vendor denies refunding the duplicate
payment. Which document is most critical to establish the facts of this case?
A) The employee's vacation schedule
B) The cancelled checks and bank statements
C) The vendor's website
D) The employee's performance reviews
Correct Answer: B
Rationale: Cancelled checks and bank statements provide concrete evidence of payment and
are critical to proving that the vendor was paid twice. Bank statements are considered highly
reliable documentary evidence in fraud investigations because they are objective, verifiable, and
independently maintained by financial institutions. Documentary evidence is generally
considered more reliable than testimony or circumstantial evidence .
QUESTION 4
When obtaining a witness statement during a fraud investigation, which technique should the
investigator use to gather the most complete and reliable information?
A) Ask leading questions to guide the witness to the correct answers
NYC Associate Fraud Investigator EXAM QUESTIONS AND
CORRECT VERIFIED SOLUTIONS LATEST UPDATE THIS YEAR –
JUST RELEASED
NYC Associate Fraud Investigator Exam
10-LINE EXAM COVERAGE IN POINTS FORM
1. Job Duties & Scope – Supervising complex fraud investigations involving social benefit
programs (SNAP, Medicaid, housing), tax laws, procurement, payroll, timekeeping;
preparing/issuing summonses for parking violations (DOF only); developing cases from
allegation to administrative hearing or criminal referral .
2. Eligibility & Qualification Pathways – Four pathways: high school + 5 yrs investigative
experience (1 yr supervisory/administrative); associate degree + 3 yrs experience;
bachelor's degree + 2 yrs experience; or equivalent combination; 30 semester credits
substitute for 1 yr experience; administrative capacity means authority to make critical
decisions .
3. Examination Scoring – Open-competitive exam: multiple-choice test determines 100%
of score; promotion exam: 85% test score + 15% seniority (70 + 0.5 point per 3 months
continuous service, max 15 yrs); passing score 70% required for all candidates .
4. Test Domains – General investigative tasks and supervision; principles and techniques of
investigation; civil and criminal justice systems knowledge; ethical conduct standards
including Mayor's Executive Order No. 1978; analytical thinking; quantitative analysis;
judgment and decision-making; planning and organizing; personnel management;
written expression .
5. Fraud Schemes & Detection – Benefit fraud (SNAP income omission, Medicaid dual
enrollment, housing subletting); payroll fraud (ghost employees, time theft, overtime
padding); procurement fraud (bid rigging, vendor collusion, kickbacks, conflict of
interest); financial statement manipulation; red flags include missing records, unusual
transactions, identical contact info among competing bidders, invoice patterns .
6. Evidence & Documentation – Chain of custody essential for admissibility; documentary
evidence (bank statements, cancelled checks, time records) most reliable; electronic
evidence requires authentication (witness testimony to genuineness); obtaining records
without proper legal process (subpoena) violates lawful access and chain of custody;
preserve original data integrity for digital evidence .
7. Investigation Procedures – Initial step: obtain time records and surveillance logs for
comparison before confronting subject; cross-check official records (postal service
change-of-address, DMV) to verify residency; data analytics and hash functions for
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duplicate detection; use open-ended questions in interviews; document all investigative
decisions to ensure accountability and transparency .
8. Legal Framework – Criminal Law – Grand larceny 4th degree (NY Penal Law §155.30):
property value exceeds $1,000; petit larceny: value ≤ $1,000; NYC conflict of interest law
prohibits public servants from using position to benefit relatives through city contracts;
evidentiary standards: preponderance (civil) vs. beyond reasonable doubt (criminal);
Weingarten rights allow union representation during investigatory interviews .
9. Ethics & Professional Conduct – Accepting gratuities from subjects (even coffee) violates
ethics rules; impartial judgment required; maintain confidentiality of sensitive
information; recuse self from investigations involving personal connections; avoid
unsupported accusations; due process ensures fair and legal procedures; conflict of
interest is primary ethical concern when employee approves invoices for spouse-owned
company .
10. Special Requirements (DOF Only) – Peace Officer status requires good moral character;
U.S. citizenship required at appointment; valid NY State driver license (maintained
throughout employment); medical, physical, psychological examination; drug screening;
training certification and annual recertification required .
50 NGN-STYLE PRACTICE QUESTIONS WITH RATIONALES
QUESTION 1
A city employee claims 40 hours of overtime on their timesheet, but surveillance footage shows
them at a movie theater for 6 of those hours. What is the best initial step in this investigation?
A) Confront the employee immediately about the discrepancy
B) Write a final report recommending termination
C) Obtain time records and surveillance logs for comparison
D) Ignore the discrepancy as it is a minor amount
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Correct Answer: C
Rationale: Comparing time records with surveillance logs creates objective evidence of potential
payroll fraud before any interview. Documentation and evidence gathering should precede
confrontation to build a strong case. Confrontation without evidence may alert the subject and
compromise the investigation. A final report would be premature without thorough evidence
analysis. Ignoring the discrepancy would constitute negligence in the investigator's duties. The
systematic approach of gathering objective evidence first is a fundamental investigative
principle .
QUESTION 2
During a SNAP interview, an applicant states they have no job, but their social media shows
them bragging about "under-the-table" construction work. This is an example of which type of
fraud?
A) Identity theft
B) Failure to report income – fraud
C) Clerical error
D) Housing fraud
Correct Answer: B
Rationale: Intentional omission of income to qualify for benefits is fraud, not a mistake, and is a
core SNAP violation. The applicant knowingly failed to report income to maintain eligibility for
benefits they would not otherwise qualify for. This is not identity theft, clerical error, or housing
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fraud; it is a deliberate deception to secure unlawful gain from a public benefit program.
Investigators must distinguish between intentional deception and honest errors .
QUESTION 3
You discover a vendor invoice that was paid twice. The vendor denies refunding the duplicate
payment. Which document is most critical to establish the facts of this case?
A) The employee's vacation schedule
B) The cancelled checks and bank statements
C) The vendor's website
D) The employee's performance reviews
Correct Answer: B
Rationale: Cancelled checks and bank statements provide concrete evidence of payment and
are critical to proving that the vendor was paid twice. Bank statements are considered highly
reliable documentary evidence in fraud investigations because they are objective, verifiable, and
independently maintained by financial institutions. Documentary evidence is generally
considered more reliable than testimony or circumstantial evidence .
QUESTION 4
When obtaining a witness statement during a fraud investigation, which technique should the
investigator use to gather the most complete and reliable information?
A) Ask leading questions to guide the witness to the correct answers
