NYC ASSOCIATE FRAUD INVESTIGATOR EXAM | QUESTIONS
AND ANSWERS | VERIFIED AND WELL-DETAILED ANSWERS |
PLUS RATIONALES | 100% GUARANTEED PASS | LATEST
EXAM UPDATE 2026
Exam Coverage Summary
The NYC Associate Fraud Investigator exam is a competitive civil service test administered by DCAS for
supervisory investigative roles within agencies including the Department of Investigation (DOI), Human
Resources Administration (HRA), and the Department of Finance. The exam evaluates knowledge and
skills in fraud detection, investigative methods, evidence handling, interviewing, legal awareness, and
ethical decision-making. Core content areas include: detecting and investigating fraud in public benefits
(SNAP, Medicaid, housing assistance, public assistance), procurement fraud, payroll and timekeeping
fraud; NYC conflict of interest laws and ethical standards; investigative techniques including
surveillance, interviews, data mining, and forensic accounting; evidence preservation and chain of
custody; report writing; and testifying at administrative hearings. Candidates are expected to
understand the New York Penal Law (including grand larceny thresholds under §155.30), the NYC
Administrative Code, rules of evidence, fraud schemes and red flags, and the New York City Criminal
Procedure Law. The exam uses multiple-choice and scenario-based questions requiring application of
investigative principles to real-world situations. A score of at least 70% is required to pass. The
Associate Fraud Investigator supervises and performs complex investigations into fraud activities
involving social benefit programs, tax laws, and internal corruption.
MULTIPLE CHOICE
Question 1: A city employee claims 40 hours of overtime but surveillance shows them at a movie theater for 6 of
those hours. What is the best initial step?
A) Confront the employee immediately
B) Write a final report
C) Obtain time records and surveillance log for comparison
D) Ignore because it is a minor amount
1|Page
,Answer: C
Comparing time records with surveillance logs creates objective evidence of potential payroll fraud before any
interview; this builds a solid factual foundation for the investigation.
Question 2: During a SNAP interview, an applicant says they have no job but their social media shows them
bragging about "under-the-table" construction work. This is an example of:
A) Identity theft
B) Failure to report income – fraud
C) Clerical error
D) Housing fraud
Answer: B
Intentional omission of income to qualify for benefits constitutes fraud, not a mistake; this is a core SNAP
violation that investigators must identify and document.
Question 3: You discover a vendor invoice was paid twice and the vendor denies refunding the duplicate. Which
document is most critical?
A) The employee's vacation schedule
B) The cancelled checks and bank statements
C) The vendor's business license
D) The employee's personnel file
Answer: B
2|Page
,Cancelled checks and bank statements provide definitive proof of duplicate payment and are essential
documentary evidence for establishing the financial loss.
Question 4: You obtain bank records without a subpoena because the manager is a friend. What principle does
this violate?
A) The hearsay rule
B) Chain of custody and lawful access
C) The best evidence rule
D) Double jeopardy
Answer: B
Using personal friendship to bypass legal process breaks chain of custody and may render evidence inadmissible;
investigators must follow proper legal channels.
Question 5: At a hearing, you testify that "the investigator before me said he saw fraud." This is most likely:
A) Direct evidence
B) Hearsay and likely inadmissible
C) A spontaneous statement
D) A business record exception
Answer: B
3|Page
, Testifying about what another investigator said constitutes hearsay; it is not based on the witness's personal
knowledge and is generally inadmissible.
Question 6: Under New York Penal Law, which fact pattern most clearly establishes grand larceny in the fourth
degree?
A) An employee steals $900 from a company safe over six months
B) A contractor submits an invoice for $1,200 for work not performed, and the client pays
C) A person shoplifts merchandise valued at $1,500 but is arrested before leaving
D) A bank teller takes $300 from a customer's account
Answer: B
Grand larceny in the fourth degree under NY Penal Law §155.30 occurs when the value exceeds $1,000; option B
involves a fraudulent invoice for $1,200, exceeding the threshold.
Question 7: In a fraud investigation, you discover an employee has been approving vendor invoices for a
company owned by the employee's spouse. What is the primary ethical concern?
A) The employee is working too hard
B) Conflict of interest and self-dealing
C) The vendor is overcharging
D) The employee is not qualified
Answer: B
4|Page
AND ANSWERS | VERIFIED AND WELL-DETAILED ANSWERS |
PLUS RATIONALES | 100% GUARANTEED PASS | LATEST
EXAM UPDATE 2026
Exam Coverage Summary
The NYC Associate Fraud Investigator exam is a competitive civil service test administered by DCAS for
supervisory investigative roles within agencies including the Department of Investigation (DOI), Human
Resources Administration (HRA), and the Department of Finance. The exam evaluates knowledge and
skills in fraud detection, investigative methods, evidence handling, interviewing, legal awareness, and
ethical decision-making. Core content areas include: detecting and investigating fraud in public benefits
(SNAP, Medicaid, housing assistance, public assistance), procurement fraud, payroll and timekeeping
fraud; NYC conflict of interest laws and ethical standards; investigative techniques including
surveillance, interviews, data mining, and forensic accounting; evidence preservation and chain of
custody; report writing; and testifying at administrative hearings. Candidates are expected to
understand the New York Penal Law (including grand larceny thresholds under §155.30), the NYC
Administrative Code, rules of evidence, fraud schemes and red flags, and the New York City Criminal
Procedure Law. The exam uses multiple-choice and scenario-based questions requiring application of
investigative principles to real-world situations. A score of at least 70% is required to pass. The
Associate Fraud Investigator supervises and performs complex investigations into fraud activities
involving social benefit programs, tax laws, and internal corruption.
MULTIPLE CHOICE
Question 1: A city employee claims 40 hours of overtime but surveillance shows them at a movie theater for 6 of
those hours. What is the best initial step?
A) Confront the employee immediately
B) Write a final report
C) Obtain time records and surveillance log for comparison
D) Ignore because it is a minor amount
1|Page
,Answer: C
Comparing time records with surveillance logs creates objective evidence of potential payroll fraud before any
interview; this builds a solid factual foundation for the investigation.
Question 2: During a SNAP interview, an applicant says they have no job but their social media shows them
bragging about "under-the-table" construction work. This is an example of:
A) Identity theft
B) Failure to report income – fraud
C) Clerical error
D) Housing fraud
Answer: B
Intentional omission of income to qualify for benefits constitutes fraud, not a mistake; this is a core SNAP
violation that investigators must identify and document.
Question 3: You discover a vendor invoice was paid twice and the vendor denies refunding the duplicate. Which
document is most critical?
A) The employee's vacation schedule
B) The cancelled checks and bank statements
C) The vendor's business license
D) The employee's personnel file
Answer: B
2|Page
,Cancelled checks and bank statements provide definitive proof of duplicate payment and are essential
documentary evidence for establishing the financial loss.
Question 4: You obtain bank records without a subpoena because the manager is a friend. What principle does
this violate?
A) The hearsay rule
B) Chain of custody and lawful access
C) The best evidence rule
D) Double jeopardy
Answer: B
Using personal friendship to bypass legal process breaks chain of custody and may render evidence inadmissible;
investigators must follow proper legal channels.
Question 5: At a hearing, you testify that "the investigator before me said he saw fraud." This is most likely:
A) Direct evidence
B) Hearsay and likely inadmissible
C) A spontaneous statement
D) A business record exception
Answer: B
3|Page
, Testifying about what another investigator said constitutes hearsay; it is not based on the witness's personal
knowledge and is generally inadmissible.
Question 6: Under New York Penal Law, which fact pattern most clearly establishes grand larceny in the fourth
degree?
A) An employee steals $900 from a company safe over six months
B) A contractor submits an invoice for $1,200 for work not performed, and the client pays
C) A person shoplifts merchandise valued at $1,500 but is arrested before leaving
D) A bank teller takes $300 from a customer's account
Answer: B
Grand larceny in the fourth degree under NY Penal Law §155.30 occurs when the value exceeds $1,000; option B
involves a fraudulent invoice for $1,200, exceeding the threshold.
Question 7: In a fraud investigation, you discover an employee has been approving vendor invoices for a
company owned by the employee's spouse. What is the primary ethical concern?
A) The employee is working too hard
B) Conflict of interest and self-dealing
C) The vendor is overcharging
D) The employee is not qualified
Answer: B
4|Page
