NYC ASSOCIATE FRAUD INVESTIGATOR EXAM
6123 NEWEST COMMON EXAM QUESTIONS
2026 -2027| 100 ORIGINAL QUESTIONS &
ANSWERS FROM ACTUAL PAST PAPERS |
DETAILED RATIONALES | COMPLETE EXAM
PREP GRADED A+
1. An investigator reviewing a public-benefit case discovers that the
recipient reported no employment income for 18 months. Bank
records obtained through authorized investigative procedures
show recurring payroll deposits from an employer during the
same period. Which investigative step is MOST appropriate before
concluding that fraud occurred?
A. Immediately close the benefit case and refer the recipient for
prosecution.
B. Assume the payroll deposits belong to another person with the same
name.
C. Corroborate the employment information through independent
records and determine whether the deposits are attributable to the
recipient.
D. Disregard the bank records because benefit eligibility is determined
only from agency records.
Answer: C. Corroborate the employment information through
independent records and determine whether the deposits are
attributable to the recipient.
,Investigators should corroborate significant evidence and establish the
connection between the financial activity and the subject before
reaching a conclusion.
2. A subject claims that several large cash deposits into a personal
account were gifts from relatives. The deposits occurred
immediately after the subject submitted applications for income-
based benefits. Which fact would provide the STRONGEST basis
for further investigation?
A. The subject maintains a checking account.
B. The deposits were made in different branches.
C. The alleged gifts correspond closely with the amounts of unreported
income identified in other records.
D. The subject has relatives living in the same city.
Answer: C. The alleged gifts correspond closely with the amounts of
unreported income identified in other records.
The timing and matching amounts create a meaningful connection
between the deposits and potentially undisclosed income.
3. An investigator interviews an employee suspected of manipulating
benefit records. The employee provides an explanation that
conflicts with electronic access logs. What should the investigator
generally do FIRST?
A. Accuse the employee of lying.
B. Document the discrepancy and seek additional evidence that can
independently establish what occurred.
C. Delete the employee's explanation from the case file.
D. Immediately suspend the employee.
,Answer: B. Document the discrepancy and seek additional evidence
that can independently establish what occurred.
An investigative discrepancy should be documented and tested against
additional evidence rather than resolved through assumption.
4. During an investigation, two documents contain different dates for
the same transaction. Which approach is MOST reliable?
A. Select the date appearing on the document obtained first.
B. Select the date that best supports the investigator's theory.
C. Determine the source, creation circumstances, and reliability of each
document and corroborate the transaction independently.
D. Use the later date because it is presumed to be more accurate.
Answer: C. Determine the source, creation circumstances, and
reliability of each document and corroborate the transaction
independently.
Conflicting records require evaluation of reliability and corroboration
rather than an arbitrary choice.
5. An investigator notices that a business repeatedly reports
unusually high expenses while claiming very little revenue. Which
investigative technique would BEST help determine whether the
expenses are legitimate?
A. Review supporting invoices, payment records, vendors, and the
underlying business transactions.
B. Assume the expenses are fraudulent because they are unusually
high.
C. Interview only the business owner.
, D. Ignore the expenses unless the business has been previously
investigated.
Answer: A. Review supporting invoices, payment records, vendors,
and the underlying business transactions.
Testing the underlying transactions can establish whether reported
expenses actually occurred and whether they were legitimate.
6. A case file contains an allegation, an anonymous complaint,
several financial records, and an interview statement. Which item
is generally considered the strongest evidence of an actual
transaction?
A. An unverified allegation
B. A rumor reported by a neighbor
C. An independently authenticated financial record directly reflecting
the transaction
D. An investigator's assumption based on the allegation
Answer: C. An independently authenticated financial record directly
reflecting the transaction.
Authenticated records directly connected to an event generally provide
stronger evidentiary support than allegations or assumptions.
7. An investigator discovers that a subject owns several properties
under different business names. What is the MOST appropriate
next step when searching for concealed assets?
A. Assume all properties belong personally to the subject.
B. Determine the ownership structure of each entity and identify the
subject's documented relationship to the properties.
6123 NEWEST COMMON EXAM QUESTIONS
2026 -2027| 100 ORIGINAL QUESTIONS &
ANSWERS FROM ACTUAL PAST PAPERS |
DETAILED RATIONALES | COMPLETE EXAM
PREP GRADED A+
1. An investigator reviewing a public-benefit case discovers that the
recipient reported no employment income for 18 months. Bank
records obtained through authorized investigative procedures
show recurring payroll deposits from an employer during the
same period. Which investigative step is MOST appropriate before
concluding that fraud occurred?
A. Immediately close the benefit case and refer the recipient for
prosecution.
B. Assume the payroll deposits belong to another person with the same
name.
C. Corroborate the employment information through independent
records and determine whether the deposits are attributable to the
recipient.
D. Disregard the bank records because benefit eligibility is determined
only from agency records.
Answer: C. Corroborate the employment information through
independent records and determine whether the deposits are
attributable to the recipient.
,Investigators should corroborate significant evidence and establish the
connection between the financial activity and the subject before
reaching a conclusion.
2. A subject claims that several large cash deposits into a personal
account were gifts from relatives. The deposits occurred
immediately after the subject submitted applications for income-
based benefits. Which fact would provide the STRONGEST basis
for further investigation?
A. The subject maintains a checking account.
B. The deposits were made in different branches.
C. The alleged gifts correspond closely with the amounts of unreported
income identified in other records.
D. The subject has relatives living in the same city.
Answer: C. The alleged gifts correspond closely with the amounts of
unreported income identified in other records.
The timing and matching amounts create a meaningful connection
between the deposits and potentially undisclosed income.
3. An investigator interviews an employee suspected of manipulating
benefit records. The employee provides an explanation that
conflicts with electronic access logs. What should the investigator
generally do FIRST?
A. Accuse the employee of lying.
B. Document the discrepancy and seek additional evidence that can
independently establish what occurred.
C. Delete the employee's explanation from the case file.
D. Immediately suspend the employee.
,Answer: B. Document the discrepancy and seek additional evidence
that can independently establish what occurred.
An investigative discrepancy should be documented and tested against
additional evidence rather than resolved through assumption.
4. During an investigation, two documents contain different dates for
the same transaction. Which approach is MOST reliable?
A. Select the date appearing on the document obtained first.
B. Select the date that best supports the investigator's theory.
C. Determine the source, creation circumstances, and reliability of each
document and corroborate the transaction independently.
D. Use the later date because it is presumed to be more accurate.
Answer: C. Determine the source, creation circumstances, and
reliability of each document and corroborate the transaction
independently.
Conflicting records require evaluation of reliability and corroboration
rather than an arbitrary choice.
5. An investigator notices that a business repeatedly reports
unusually high expenses while claiming very little revenue. Which
investigative technique would BEST help determine whether the
expenses are legitimate?
A. Review supporting invoices, payment records, vendors, and the
underlying business transactions.
B. Assume the expenses are fraudulent because they are unusually
high.
C. Interview only the business owner.
, D. Ignore the expenses unless the business has been previously
investigated.
Answer: A. Review supporting invoices, payment records, vendors,
and the underlying business transactions.
Testing the underlying transactions can establish whether reported
expenses actually occurred and whether they were legitimate.
6. A case file contains an allegation, an anonymous complaint,
several financial records, and an interview statement. Which item
is generally considered the strongest evidence of an actual
transaction?
A. An unverified allegation
B. A rumor reported by a neighbor
C. An independently authenticated financial record directly reflecting
the transaction
D. An investigator's assumption based on the allegation
Answer: C. An independently authenticated financial record directly
reflecting the transaction.
Authenticated records directly connected to an event generally provide
stronger evidentiary support than allegations or assumptions.
7. An investigator discovers that a subject owns several properties
under different business names. What is the MOST appropriate
next step when searching for concealed assets?
A. Assume all properties belong personally to the subject.
B. Determine the ownership structure of each entity and identify the
subject's documented relationship to the properties.
