CFCI STUDY GUIDE 2024 QUESTIONS WITH
100% COMPLETE SOLUTIONS| LATEST
UPDATE
Duplicate payments - correct answer-Duplicate payments are issued for legitimate
vendors for legitimate invoices. One check goes to the vendor and one goes to the
fraudster but shows the check as voided or canceled.
Employee ghosting - correct answer-Basically time card fraud, where employees clock
in for other employees or create a fictitious employee and collect their pay.
Vehicle maintenance scheme - correct answer-fraudster agrees to send construction
company-owned or leased vehicles to a service provider for what is described as
regular maintenance. However, either the pricing for the actual services rendered is
greater than the market price, or the services documented are not actually rendered. In
either case, the service provider gives a kickback to the company employee.
Bid-Rigging Schemes or collusion - correct answer-collusive fraud wherein an employee
helps a vendor illegally obtain a contract that was supposed to involve competitive
bidding, by the employee getting a kickback.
Asset-based or working capital loan fraud - correct answer-business borrowers create
false invoices to document bogus receivables, or otherwise cook the books to appear
financially sound to a lending institution.
External mortgage fraud - correct answer-Hiding critical information about the loan, or
falsifying employment history, and indicating the property would be a primary residence
when it was purchase for investment.
Mortgage Fraud Modus Operandi - correct answer-Fraud for profit-dishonest outsiders
falsifying mortgage applications so a normally unapproved loan would be approved.
Fraud for property-defraud borrowers through the real estate system.
,builder bailout scheme - correct answer-Straw buyers or legitimate buyers who are led
to believe that they are getting a good deal in buying a new home such as incentives or
loan for down payments.
Chunking - correct answer-Fraudster recruits a gullible investor into purchasing either a
rundown over valued home, or no home at all and the investor finances the home, with
the promise of tenants or rent payment that never get paid.
Equity Skimming - correct answer-buying a property to collect rent while mortgage
payments are never paid.
Identity fraud to obtain mortgage - correct answer-Fraudster files a bogus deed or title
or steals a legitimate title, then obtains a loan on the property and takes the money and
defaults on the loan leaving the victim of identity fraud with the outstanding debt.
Overstating Appraisal Values to sell a property multiple times - correct answer-A home
is purchased on an original loan then an unscrupulous appraiser fraudulently appraises
the property at a much higher price. The owner then quickly resells the home.
Social Engineering - correct answer-hackers use their social skills to trick people into
revealing access credentials or other valuable information
Phishing Scam - correct answer-Spoofed email and website in order to trick a person
into providing private information
Business Email Compromise pg 115 - correct answer-These scams often begin with a
phishing Email that gives a fraudster access to an executive's Email
account. Typically, the fraudster will then send an Email purporting to be from the CEO
requesting a wire transfer of a specified amount to a specified bank account. The
trusting treasury or
finance employee never thinks to question its legitimacy.
FACTA - Fair & Accurate Credit Transactions Act - correct answer-Requires financial
institutions to have an identity theft prevention program in place and identifying potential
signs of identity theft.
, Carding - correct answer-to offenses in which the Internet is used to traffic in and exploit
the stolen credit
card, bank account, and other personal identification information of hundreds of
thousands of victims globally.
EMV acronym - correct answer-Europay, MasterCard, Visa the three companies that
originally created the standard for card security.
EMV chip technology - correct answer-Global technology that includes imbedded
microchips. The chip creates a unique one-time code that cannot be reused.
Forged on-us Checks - correct answer-Checks that are negotiated at the same bank on
which it was drawn.
Cashier check fraud - correct answer-Suspect agrees to purchase an item from a victim
and sends a check for more than the agreed upon price. The victim is instructed to send
the difference. Check bounces victim is out.
Bank employee Collusion with outsiders - correct answer-Organized crime rings recruit
individuals who apply for bank jobs and over time steal the PII of customers and give it
to their handlers.
check kiting - correct answer-creating cash using the lag between the time a check is
deposited and the time it clears the bank
money laundering - correct answer-When illegally obtained money is put into the
banking system then using the banking system for the money to appear legitimate.
Bank Secrecy Act (BSA) - correct answer-designed to deter the use of secret foreign
bank accounts and to establish a mandatory audit
trail for law enforcement by establishing regulatory reporting and record-keeping
requirements to help the government track the movement of cash and other monetary
instruments into and out of the country through the use of financial institutions.
Four pillars of AML compliance - correct answer-*A system of internal controls to ensure
ongoing compliance.
*Designated AML Compliance Officer.
100% COMPLETE SOLUTIONS| LATEST
UPDATE
Duplicate payments - correct answer-Duplicate payments are issued for legitimate
vendors for legitimate invoices. One check goes to the vendor and one goes to the
fraudster but shows the check as voided or canceled.
Employee ghosting - correct answer-Basically time card fraud, where employees clock
in for other employees or create a fictitious employee and collect their pay.
Vehicle maintenance scheme - correct answer-fraudster agrees to send construction
company-owned or leased vehicles to a service provider for what is described as
regular maintenance. However, either the pricing for the actual services rendered is
greater than the market price, or the services documented are not actually rendered. In
either case, the service provider gives a kickback to the company employee.
Bid-Rigging Schemes or collusion - correct answer-collusive fraud wherein an employee
helps a vendor illegally obtain a contract that was supposed to involve competitive
bidding, by the employee getting a kickback.
Asset-based or working capital loan fraud - correct answer-business borrowers create
false invoices to document bogus receivables, or otherwise cook the books to appear
financially sound to a lending institution.
External mortgage fraud - correct answer-Hiding critical information about the loan, or
falsifying employment history, and indicating the property would be a primary residence
when it was purchase for investment.
Mortgage Fraud Modus Operandi - correct answer-Fraud for profit-dishonest outsiders
falsifying mortgage applications so a normally unapproved loan would be approved.
Fraud for property-defraud borrowers through the real estate system.
,builder bailout scheme - correct answer-Straw buyers or legitimate buyers who are led
to believe that they are getting a good deal in buying a new home such as incentives or
loan for down payments.
Chunking - correct answer-Fraudster recruits a gullible investor into purchasing either a
rundown over valued home, or no home at all and the investor finances the home, with
the promise of tenants or rent payment that never get paid.
Equity Skimming - correct answer-buying a property to collect rent while mortgage
payments are never paid.
Identity fraud to obtain mortgage - correct answer-Fraudster files a bogus deed or title
or steals a legitimate title, then obtains a loan on the property and takes the money and
defaults on the loan leaving the victim of identity fraud with the outstanding debt.
Overstating Appraisal Values to sell a property multiple times - correct answer-A home
is purchased on an original loan then an unscrupulous appraiser fraudulently appraises
the property at a much higher price. The owner then quickly resells the home.
Social Engineering - correct answer-hackers use their social skills to trick people into
revealing access credentials or other valuable information
Phishing Scam - correct answer-Spoofed email and website in order to trick a person
into providing private information
Business Email Compromise pg 115 - correct answer-These scams often begin with a
phishing Email that gives a fraudster access to an executive's Email
account. Typically, the fraudster will then send an Email purporting to be from the CEO
requesting a wire transfer of a specified amount to a specified bank account. The
trusting treasury or
finance employee never thinks to question its legitimacy.
FACTA - Fair & Accurate Credit Transactions Act - correct answer-Requires financial
institutions to have an identity theft prevention program in place and identifying potential
signs of identity theft.
, Carding - correct answer-to offenses in which the Internet is used to traffic in and exploit
the stolen credit
card, bank account, and other personal identification information of hundreds of
thousands of victims globally.
EMV acronym - correct answer-Europay, MasterCard, Visa the three companies that
originally created the standard for card security.
EMV chip technology - correct answer-Global technology that includes imbedded
microchips. The chip creates a unique one-time code that cannot be reused.
Forged on-us Checks - correct answer-Checks that are negotiated at the same bank on
which it was drawn.
Cashier check fraud - correct answer-Suspect agrees to purchase an item from a victim
and sends a check for more than the agreed upon price. The victim is instructed to send
the difference. Check bounces victim is out.
Bank employee Collusion with outsiders - correct answer-Organized crime rings recruit
individuals who apply for bank jobs and over time steal the PII of customers and give it
to their handlers.
check kiting - correct answer-creating cash using the lag between the time a check is
deposited and the time it clears the bank
money laundering - correct answer-When illegally obtained money is put into the
banking system then using the banking system for the money to appear legitimate.
Bank Secrecy Act (BSA) - correct answer-designed to deter the use of secret foreign
bank accounts and to establish a mandatory audit
trail for law enforcement by establishing regulatory reporting and record-keeping
requirements to help the government track the movement of cash and other monetary
instruments into and out of the country through the use of financial institutions.
Four pillars of AML compliance - correct answer-*A system of internal controls to ensure
ongoing compliance.
*Designated AML Compliance Officer.
