CFCI EXAM NEWEST 2025 ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT ANSWERS
"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." - (answer) Fraud
Internal Fraud and External Fraud - (answer) Main types of fraud
which involves the employees of the company against which the fraud is perpetrated - (answer)
Internal Fraud
deceptive conduct by non-employees that
deprives the organization of value, and/or is undertaken for financial gain. - (answer) External Fraud
theft or misappropriation of funds placed in one's trust or belonging to one's employer. - (answer)
embezzlement
"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. - (answer) financial fraud
Accounts receivable fraud, this
involves simply stealing cash before it enters the organization's accounting system. - (answer) Skimming
(cash larceny)
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. - (answer)
Billing Schemes
taking advantage of employee access to blank company checks, using a password to
steal computer-generated checks, or producing counterfeit checks. - (answer) check tampering
,CFCI EXAM NEWEST 2025 ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT ANSWERS
making false claims for reimbursement, or inflating or creating fictitious business expenses. (Travel /meal
reimbursement. - (answer) Employee reimbursement scheme
Bribery, illegal gratuities, and/or extortion. - (answer) corruption
when something of value is offered or given to influence a business decision - (answer) bribery
when something of value is given to an employee to reward a business decision. - (answer) Illegal
Gratuities
when a person demands payment or seeks to influence a business decision by threat of harm through
loss of business or personal injury. - (answer) Extortion
involving employees and vendors, often using inflated billing or invoices for which the employee is paid a
portion of the inflated or fictitious invoice. - (answer) Kickback Schemes
the creation, sale, or use of a counterfeit credit card, or the use of a stolen credit or debit card. -
(answer) credit card fraud
Card not present transactions - (answer) C.N.P
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. - (answer) identity
fraud
the fraudulent acquisition or stealing of confidential personal information. - (answer) identity theft
Theft (stealing money, ID, or assests) and deception (cooking the books, lying to shareholders,
employees or partners) - (answer) 2 categories that encompass Fraud
"We have very little fraud here" ex: subprime mortgage fraud - (answer) Myth #1 of the Financial
Services
, CFCI EXAM NEWEST 2025 ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT ANSWERS
"Ethics and training compliance has us covered" Fraud is not always covered in ethics policy or training. -
(answer) Myth #2 of Financial Services
"Fraud is an unavoidable cost of doing business" Fraud is usually not serious enough to destroy a
financial service firm, it is much more than necessary cost of doing business. - (answer) Myth #3 of
Financial Services
• The numbers do not lie: Fraud is a huge worldwide problem—for all organizations.
• Financial services fraud. Seventy-one percent of financial institutions experienced attempted payment
fraud (check fraud, ACH fraud, or credit card fraud in 2017).
• Definitions of fraud. The broad definition of fraud is illegal activity representing either theft or
deception, or a combination of both.
• Myths about fraud. It is easy to become complacent about fraud, but doing so can be very costly.
Fraud does occur in every organization, and is potentially serious enough to cause major long-term
damage.
• Main types of fraud. Countless varieties of fraud threaten financial institutions. Fraudsters are con-
stantly thinking up new ways to target financial services institutions. - (answer) Chapter 1 review points
20% of people will never commit fraud
60% are fence sitters and may commit fraud if given the opportunity
20% of people inherently dishonest (pg 29) - (answer) 20-60-20 rule of human component of fraud
Employee level fraud and management level fraud - (answer) 2 types of insider fraud threat
Management level fraud is committed less frequently than employee level fraud however the financial
loss is greater. (pg 30) - (answer) Inverse ratio between the level of organization at which fraud is
committed
The three factors that contribute to fraudulent activity by employees: opportunity, financial pressure,
and rationalization. pg 8 and 30 - (answer) Fraud Triangle
"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." - (answer) Fraud
Internal Fraud and External Fraud - (answer) Main types of fraud
which involves the employees of the company against which the fraud is perpetrated - (answer)
Internal Fraud
deceptive conduct by non-employees that
deprives the organization of value, and/or is undertaken for financial gain. - (answer) External Fraud
theft or misappropriation of funds placed in one's trust or belonging to one's employer. - (answer)
embezzlement
"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. - (answer) financial fraud
Accounts receivable fraud, this
involves simply stealing cash before it enters the organization's accounting system. - (answer) Skimming
(cash larceny)
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. - (answer)
Billing Schemes
taking advantage of employee access to blank company checks, using a password to
steal computer-generated checks, or producing counterfeit checks. - (answer) check tampering
,CFCI EXAM NEWEST 2025 ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT ANSWERS
making false claims for reimbursement, or inflating or creating fictitious business expenses. (Travel /meal
reimbursement. - (answer) Employee reimbursement scheme
Bribery, illegal gratuities, and/or extortion. - (answer) corruption
when something of value is offered or given to influence a business decision - (answer) bribery
when something of value is given to an employee to reward a business decision. - (answer) Illegal
Gratuities
when a person demands payment or seeks to influence a business decision by threat of harm through
loss of business or personal injury. - (answer) Extortion
involving employees and vendors, often using inflated billing or invoices for which the employee is paid a
portion of the inflated or fictitious invoice. - (answer) Kickback Schemes
the creation, sale, or use of a counterfeit credit card, or the use of a stolen credit or debit card. -
(answer) credit card fraud
Card not present transactions - (answer) C.N.P
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. - (answer) identity
fraud
the fraudulent acquisition or stealing of confidential personal information. - (answer) identity theft
Theft (stealing money, ID, or assests) and deception (cooking the books, lying to shareholders,
employees or partners) - (answer) 2 categories that encompass Fraud
"We have very little fraud here" ex: subprime mortgage fraud - (answer) Myth #1 of the Financial
Services
, CFCI EXAM NEWEST 2025 ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT ANSWERS
"Ethics and training compliance has us covered" Fraud is not always covered in ethics policy or training. -
(answer) Myth #2 of Financial Services
"Fraud is an unavoidable cost of doing business" Fraud is usually not serious enough to destroy a
financial service firm, it is much more than necessary cost of doing business. - (answer) Myth #3 of
Financial Services
• The numbers do not lie: Fraud is a huge worldwide problem—for all organizations.
• Financial services fraud. Seventy-one percent of financial institutions experienced attempted payment
fraud (check fraud, ACH fraud, or credit card fraud in 2017).
• Definitions of fraud. The broad definition of fraud is illegal activity representing either theft or
deception, or a combination of both.
• Myths about fraud. It is easy to become complacent about fraud, but doing so can be very costly.
Fraud does occur in every organization, and is potentially serious enough to cause major long-term
damage.
• Main types of fraud. Countless varieties of fraud threaten financial institutions. Fraudsters are con-
stantly thinking up new ways to target financial services institutions. - (answer) Chapter 1 review points
20% of people will never commit fraud
60% are fence sitters and may commit fraud if given the opportunity
20% of people inherently dishonest (pg 29) - (answer) 20-60-20 rule of human component of fraud
Employee level fraud and management level fraud - (answer) 2 types of insider fraud threat
Management level fraud is committed less frequently than employee level fraud however the financial
loss is greater. (pg 30) - (answer) Inverse ratio between the level of organization at which fraud is
committed
The three factors that contribute to fraudulent activity by employees: opportunity, financial pressure,
and rationalization. pg 8 and 30 - (answer) Fraud Triangle
