CFCI EXAM QUESTIONS AND ACCURATE ANSWERS 2024/2025 | VERIFIED
Fraud - ✔️✔️"Any illegal acts characterized by deceit, concealment, or violation of trust. These acts are
not dependent upon the perpetrated by individuals and organizations to obtain money, property, or
services; to avoid payment or loss of services; or to secure personal or business ad-vantage."
Main types of fraud - ✔️✔️Internal Fraud and External Fraud
Internal Fraud - ✔️✔️which involves the employees of the company against which the fraud is
perpetrated
External Fraud - ✔️✔️deceptive conduct by non-employees that
deprives the organization of value, and/or is undertaken for financial gain.
embezzlement - ✔️✔️theft or misappropriation of funds placed in one's trust or belonging to one's
employer.
financial fraud - ✔️✔️"cooking the books." This type of
fraud generally refers to falsely representing the financial condition of the company, so as to inflate the
value of stock, fraudulently boost executive bonuses, or otherwise mislead shareholders, lenders,
employees, investment analysts, or other users of the information.
Skimming (cash larceny) - ✔️✔️Accounts receivable fraud, this
involves simply stealing cash before it enters the organization's accounting system.
Billing Schemes - ✔️✔️Perpetrated by employees who cause their employer to issue a payment to a
false supplier by submitting invoices for fictitious goods or services, inflated invoices, or invoices for
personal purchases.
check tampering - ✔️✔️taking advantage of employee access to blank company checks, using a
password to
steal computer-generated checks, or producing counterfeit checks.
, Employee reimbursement scheme - ✔️✔️making false claims for reimbursement, or inflating or
creating fictitious business expenses. (Travel /meal reimbursement.
corruption - ✔️✔️Bribery, illegal gratuities, and/or extortion.
bribery - ✔️✔️when something of value is offered or given to influence a business decision
Illegal Gratuities - ✔️✔️when something of value is given to an employee to reward a business decision.
Extortion - ✔️✔️when a person demands payment or seeks to influence a business decision by threat
of harm through loss of business or personal injury.
Kickback Schemes - ✔️✔️involving employees and vendors, often using inflated billing or invoices for
which the employee is paid a portion of the inflated or fictitious invoice.
credit card fraud - ✔️✔️the creation, sale, or use of a counterfeit credit card, or the use of a stolen
credit or debit card.
C.N.P - ✔️✔️Card not present transactions
identity fraud - ✔️✔️involves the unauthorized use of another person's personal data for illegal
financial benefit. Involves abusing the stolen information to transact personal business in the victim's
name.
identity theft - ✔️✔️the fraudulent acquisition or stealing of confidential personal information.
2 categories that encompass Fraud - ✔️✔️Theft (stealing money, ID, or assests) and deception (cooking
the books, lying to shareholders, employees or partners)
Myth #1 of the Financial Services - ✔️✔️"We have very little fraud here" ex: subprime mortgage fraud
Fraud - ✔️✔️"Any illegal acts characterized by deceit, concealment, or violation of trust. These acts are
not dependent upon the perpetrated by individuals and organizations to obtain money, property, or
services; to avoid payment or loss of services; or to secure personal or business ad-vantage."
Main types of fraud - ✔️✔️Internal Fraud and External Fraud
Internal Fraud - ✔️✔️which involves the employees of the company against which the fraud is
perpetrated
External Fraud - ✔️✔️deceptive conduct by non-employees that
deprives the organization of value, and/or is undertaken for financial gain.
embezzlement - ✔️✔️theft or misappropriation of funds placed in one's trust or belonging to one's
employer.
financial fraud - ✔️✔️"cooking the books." This type of
fraud generally refers to falsely representing the financial condition of the company, so as to inflate the
value of stock, fraudulently boost executive bonuses, or otherwise mislead shareholders, lenders,
employees, investment analysts, or other users of the information.
Skimming (cash larceny) - ✔️✔️Accounts receivable fraud, this
involves simply stealing cash before it enters the organization's accounting system.
Billing Schemes - ✔️✔️Perpetrated by employees who cause their employer to issue a payment to a
false supplier by submitting invoices for fictitious goods or services, inflated invoices, or invoices for
personal purchases.
check tampering - ✔️✔️taking advantage of employee access to blank company checks, using a
password to
steal computer-generated checks, or producing counterfeit checks.
, Employee reimbursement scheme - ✔️✔️making false claims for reimbursement, or inflating or
creating fictitious business expenses. (Travel /meal reimbursement.
corruption - ✔️✔️Bribery, illegal gratuities, and/or extortion.
bribery - ✔️✔️when something of value is offered or given to influence a business decision
Illegal Gratuities - ✔️✔️when something of value is given to an employee to reward a business decision.
Extortion - ✔️✔️when a person demands payment or seeks to influence a business decision by threat
of harm through loss of business or personal injury.
Kickback Schemes - ✔️✔️involving employees and vendors, often using inflated billing or invoices for
which the employee is paid a portion of the inflated or fictitious invoice.
credit card fraud - ✔️✔️the creation, sale, or use of a counterfeit credit card, or the use of a stolen
credit or debit card.
C.N.P - ✔️✔️Card not present transactions
identity fraud - ✔️✔️involves the unauthorized use of another person's personal data for illegal
financial benefit. Involves abusing the stolen information to transact personal business in the victim's
name.
identity theft - ✔️✔️the fraudulent acquisition or stealing of confidential personal information.
2 categories that encompass Fraud - ✔️✔️Theft (stealing money, ID, or assests) and deception (cooking
the books, lying to shareholders, employees or partners)
Myth #1 of the Financial Services - ✔️✔️"We have very little fraud here" ex: subprime mortgage fraud
