CFCI Study Guide| Answered 100% Correctly – Updated

CFCI Study Guide| Answered 100% Correctly – Updated 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 Activities that may be criminal, committed within an organization, typically by the employee against the employer. External Fraud Deceptive conduct by non-employees that deprives the organization of value, and/or is undertaken for financial gain. Embezzlement The theft of money, property, or other assets of the employer. Larceny The taking away of the property of another, with the intent to convert it to his/her own use. 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 Using false documentation to cause a targeted organization to issue a payment for false services and/or purchases. Check Tampering Common method (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 Forms of corruption 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 Theft The fraudulent acquisition or stealing of confidential personal information through social engineering. Identity Fraud