Fraud Examination Exam 1
What is the most common way to classify fraud? Those that are committed against an organization, and those that are
committed on behalf of organizations
Fraud committed against the organization, where the Employee fraud
victim of the fraud is the employee's organization.
Fraud committed on behalf of the organization, where Financial statement fraud
its reported financial statements look better than they
actually are.
The use of one's occupation for personnel enrichment Occupational fraud
through the deliberate misuse or misapplication of the
employing organization's resources or assets.
What are the three major categories of occupational 1. Asset misappropriations
fraud? 2. Corruption
3. Fraudulent statements
Involves the theft or misuse of an organization's assets. Asset misappropriations
Involves the wrongful use of the fraudsters influence in Corruption
a business transaction in order to procure some benefit
for themselves or another person, contrary to their duty
to their employer or the rights of another.
Involves the general falsification of an organization's Fraudulent statements
financial statements.
Employees use their positions to take or divert assets Employee embezzlement
belonging to their employer.
The most common type of fraud. Employee embezzlement
Third parties either overkill or provide lower quality or Vendor fraud
fewer goods than agreed.
Consumers do not pay, pay too little, or get too much Customer fraud
from the organization through deception.
, Fraud Examination Exam 1
Higher level employees manipulate the financial Management fraud
statements to make the company look better than it is.
The most expensive type of fraud. Financial statement fraud
These types of frauds are committed on the Internet Investment scams and other consumer frauds
and in person and obtain the confidence of individuals
to get them to invest money in worthless schemes.
Anytime anyone takes advantage of the confidence of Other (miscellaneous) types of fraud
another person to deceive him or her.
Lure investment funds from victims and then pay those Ponzi schemes
victims a premium or interest from money that is paid by
subsequent investors.
Victims send money to people they do not know Telemarketing fraud
personally or give personal financial information to
unknown callers.
Occurs when a potential victim receives an e-mail or Nigerian letter or money scams
other form of communication promising the victim a
large financial payout in exchange for help in
transporting large sums of money from one country to
another.
Occurs when someone assumes the identity of another Identity theft
person to purchase goods, engage in criminal activity,
or perpetrate fraud.
Occurs when a victim pays an up-front cost for a good Advance fee scams
or service that is never delivered.
Perpetrators claim that the U.S. government controls Redemption/strawman/bond fraud
certain bank accounts that can be accessed by
submitting paperwork with government officials. In
order to gain access to this paperwork, victims must
buy expensive training kits that teach individuals how to
access the funds. When the victim is unable to access
the government funds, the perpetrator will indicate that
the paperwork was not filled out correctly and will
often charge additional fees for more training.
What is the most common way to classify fraud? Those that are committed against an organization, and those that are
committed on behalf of organizations
Fraud committed against the organization, where the Employee fraud
victim of the fraud is the employee's organization.
Fraud committed on behalf of the organization, where Financial statement fraud
its reported financial statements look better than they
actually are.
The use of one's occupation for personnel enrichment Occupational fraud
through the deliberate misuse or misapplication of the
employing organization's resources or assets.
What are the three major categories of occupational 1. Asset misappropriations
fraud? 2. Corruption
3. Fraudulent statements
Involves the theft or misuse of an organization's assets. Asset misappropriations
Involves the wrongful use of the fraudsters influence in Corruption
a business transaction in order to procure some benefit
for themselves or another person, contrary to their duty
to their employer or the rights of another.
Involves the general falsification of an organization's Fraudulent statements
financial statements.
Employees use their positions to take or divert assets Employee embezzlement
belonging to their employer.
The most common type of fraud. Employee embezzlement
Third parties either overkill or provide lower quality or Vendor fraud
fewer goods than agreed.
Consumers do not pay, pay too little, or get too much Customer fraud
from the organization through deception.
, Fraud Examination Exam 1
Higher level employees manipulate the financial Management fraud
statements to make the company look better than it is.
The most expensive type of fraud. Financial statement fraud
These types of frauds are committed on the Internet Investment scams and other consumer frauds
and in person and obtain the confidence of individuals
to get them to invest money in worthless schemes.
Anytime anyone takes advantage of the confidence of Other (miscellaneous) types of fraud
another person to deceive him or her.
Lure investment funds from victims and then pay those Ponzi schemes
victims a premium or interest from money that is paid by
subsequent investors.
Victims send money to people they do not know Telemarketing fraud
personally or give personal financial information to
unknown callers.
Occurs when a potential victim receives an e-mail or Nigerian letter or money scams
other form of communication promising the victim a
large financial payout in exchange for help in
transporting large sums of money from one country to
another.
Occurs when someone assumes the identity of another Identity theft
person to purchase goods, engage in criminal activity,
or perpetrate fraud.
Occurs when a victim pays an up-front cost for a good Advance fee scams
or service that is never delivered.
Perpetrators claim that the U.S. government controls Redemption/strawman/bond fraud
certain bank accounts that can be accessed by
submitting paperwork with government officials. In
order to gain access to this paperwork, victims must
buy expensive training kits that teach individuals how to
access the funds. When the victim is unable to access
the government funds, the perpetrator will indicate that
the paperwork was not filled out correctly and will
often charge additional fees for more training.
