NYC ASSOCIATE FRAUD INVESTIGATOR EXAM | Latest Update
2026/2027 | 200 Questions and Verified Answers | NYC DOI
Civil Service Test Prep | A+ Graded
1. Under New York Penal Law, which of the following fact patterns most clearly establishes the offense
of grand larceny in the fourth degree, as opposed to petit larceny?
A. An employee steals $900 in cash from a company safe over a period of six months, intending to repay
it later.
B. A contractor submits an invoice for $1,200 for work not performed, and the client pays the full
amount.
C. A person shoplifts merchandise valued at $1,500 from a department store but is arrested before
leaving the premises.
D. A bank teller takes $300 from a customer's account to cover a personal debt, planning to replace it
before detection.
Correct Answer: B. Grand larceny in the fourth degree under NY Penal Law §155.30 occurs when the
value of the property exceeds $1,000. Option B involves a fraudulent invoice for $1,200, which exceeds
the threshold. Option C also exceeds $1,000 but Option B more clearly establishes a fraud scheme.
2. In a fraud investigation, you discover that 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 committing tax evasion.
B. The employee has a conflict of interest that must be disclosed and investigated.
C. The employee is engaging in money laundering.
D. The employee is violating workplace safety regulations.
,Correct Answer: B. Approving invoices for a spouseowned company creates a clear conflict of interest.
This violates ethical standards requiring impartiality and disclosure of personal relationships that may
influence official duties.
3. What is the primary responsibility of an Associate Fraud Investigator in New York City?
A. Managing city budgets
B. Prosecuting criminal cases in court
C. Investigating suspected fraud involving public funds, benefits, or services
D. Supervising all law enforcement agencies
Correct Answer: C. Associate Fraud Investigators perform work of complex difficulty and responsibility in
investigating fraud activities involving social benefit programs or tax laws.
4. Which of the following best describes the chain of custody?
A. The sequence of command within an investigative agency
B. The documented chronological history of evidence from collection to court presentation
C. The chain of evidence used to link a suspect to a crime scene
D. The list of all witnesses in a criminal case
Correct Answer: B. Chain of custody is the documented chronological history of evidence, showing who
collected it, who handled it, and where it was stored from the time of collection until its presentation in
court.
,5. 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
Correct Answer: C. Comparing time records with surveillance logs creates objective evidence of potential
payroll fraud before any interview.
6. During a SNAP interview, an applicant says they have no job but their social media shows them
bragging about "underthetable" construction work. This is an example of:
A. Identity theft
B. Failure to report income – fraud
C. Clerical error
D. Housing fraud
Correct Answer: B. Intentional omission of income to qualify for benefits is fraud, not a mistake, and is a
core SNAP violation.
7. You discover a vendor invoice that was paid twice. 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 website
D. The office lunch schedule
Correct Answer: B. Cancelled checks and bank statements provide documentary evidence of the
duplicate payment and are critical to proving the fraud.
8. Which NYC agency is most commonly associated with oversight of integrity, fraud prevention, and
compliance within city agencies?
A. NYPD
B. Department of Investigation (DOI)
C. Department of Education
D. Department of Sanitation
Correct Answer: B. The Department of Investigation oversees integrity, fraud prevention, and
compliance within NYC agencies.
9. 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
2026/2027 | 200 Questions and Verified Answers | NYC DOI
Civil Service Test Prep | A+ Graded
1. Under New York Penal Law, which of the following fact patterns most clearly establishes the offense
of grand larceny in the fourth degree, as opposed to petit larceny?
A. An employee steals $900 in cash from a company safe over a period of six months, intending to repay
it later.
B. A contractor submits an invoice for $1,200 for work not performed, and the client pays the full
amount.
C. A person shoplifts merchandise valued at $1,500 from a department store but is arrested before
leaving the premises.
D. A bank teller takes $300 from a customer's account to cover a personal debt, planning to replace it
before detection.
Correct Answer: B. Grand larceny in the fourth degree under NY Penal Law §155.30 occurs when the
value of the property exceeds $1,000. Option B involves a fraudulent invoice for $1,200, which exceeds
the threshold. Option C also exceeds $1,000 but Option B more clearly establishes a fraud scheme.
2. In a fraud investigation, you discover that 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 committing tax evasion.
B. The employee has a conflict of interest that must be disclosed and investigated.
C. The employee is engaging in money laundering.
D. The employee is violating workplace safety regulations.
,Correct Answer: B. Approving invoices for a spouseowned company creates a clear conflict of interest.
This violates ethical standards requiring impartiality and disclosure of personal relationships that may
influence official duties.
3. What is the primary responsibility of an Associate Fraud Investigator in New York City?
A. Managing city budgets
B. Prosecuting criminal cases in court
C. Investigating suspected fraud involving public funds, benefits, or services
D. Supervising all law enforcement agencies
Correct Answer: C. Associate Fraud Investigators perform work of complex difficulty and responsibility in
investigating fraud activities involving social benefit programs or tax laws.
4. Which of the following best describes the chain of custody?
A. The sequence of command within an investigative agency
B. The documented chronological history of evidence from collection to court presentation
C. The chain of evidence used to link a suspect to a crime scene
D. The list of all witnesses in a criminal case
Correct Answer: B. Chain of custody is the documented chronological history of evidence, showing who
collected it, who handled it, and where it was stored from the time of collection until its presentation in
court.
,5. 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
Correct Answer: C. Comparing time records with surveillance logs creates objective evidence of potential
payroll fraud before any interview.
6. During a SNAP interview, an applicant says they have no job but their social media shows them
bragging about "underthetable" construction work. This is an example of:
A. Identity theft
B. Failure to report income – fraud
C. Clerical error
D. Housing fraud
Correct Answer: B. Intentional omission of income to qualify for benefits is fraud, not a mistake, and is a
core SNAP violation.
7. You discover a vendor invoice that was paid twice. 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 website
D. The office lunch schedule
Correct Answer: B. Cancelled checks and bank statements provide documentary evidence of the
duplicate payment and are critical to proving the fraud.
8. Which NYC agency is most commonly associated with oversight of integrity, fraud prevention, and
compliance within city agencies?
A. NYPD
B. Department of Investigation (DOI)
C. Department of Education
D. Department of Sanitation
Correct Answer: B. The Department of Investigation oversees integrity, fraud prevention, and
compliance within NYC agencies.
9. 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
