CFCI STUDY GUIDE – UPDATED EXAM QUESTIONS WITH CORRECT ANSWERS GRADED A+ FOR 2026-

CFCI STUDY GUIDE – UPDATED EXAM
QUESTIONS WITH CORRECT
ANSWERS GRADED A+ FOR 2026-
2027 ASSURED EXCEL!!
FraudJ-
JJCORRECTJANSWERS"AnyJillegalJactsJcharacterizedJbyJdeceit,Jconcealment,JorJviolationJofJtrust.JTh


eseJactsJareJnotJdependentJuponJtheJperpetratedJbyJindividualsJandJorganizationsJtoJobtainJmoney
,Jproperty,JorJservices;JtoJavoidJpaymentJorJlossJofJservices;JorJtoJsecureJpersonalJorJbusinessJad-
vantage."



MainJtypesJofJfraudJ-JJCORRECTJANSWERSInternalJFraudJandJExternalJFraud



InternalJFraudJ-
JJCORRECTJANSWERSActivitiesJthatJmayJbeJcriminal,JcommittedJwithinJanJorganization,JtypicallyJbyJ


theJemployeeJagainstJtheJemployer.



ExternalJFraudJ-JJCORRECTJANSWERSDeceptiveJconductJbyJnon-employeesJthat

deprivesJtheJorganizationJofJvalue,Jand/orJisJundertakenJforJfinancialJgain.



EmbezzlementJ-JJCORRECTJANSWERSTheJtheftJofJmoney,Jproperty,JorJotherJassetsJofJtheJemployer.



LarcenyJ-
JJCORRECTJANSWERSTheJtakingJawayJofJtheJpropertyJofJanother,JwithJtheJintentJtoJconvertJitJtoJhis/


herJownJuse.



FinancialJFraudJ-
JJCORRECTJANSWERS"CookingJtheJbooks."JThisJtypeJofJfraudJgenerallyJrefersJtoJfalselyJrepresentingJ


theJfinancialJconditionJofJtheJcompany,JsoJasJtoJinflateJtheJvalueJofJstock,JfraudulentlyJboostJexecuti

,veJbonuses,JorJotherwiseJmisleadJshareholders,Jlenders,Jemployees,JinvestmentJanalysts,JorJotherJ
usersJofJtheJinformation.



SkimmingJ(cashJlarceny)J-
JJCORRECTJANSWERSAccountsJreceivableJfraud,JthisJinvolvesJsimplyJstealingJcashJbeforeJitJentersJth


eJorganization'sJaccountingJsystem.



BillingJSchemesJ-
JJCORRECTJANSWERSUsingJfalseJdocumentationJtoJcauseJaJtargetedJorganizationJtoJissueJaJpaymen


tJforJfalseJservicesJand/orJpurchases.



CheckJTamperingJ-
JJCORRECTJANSWERSCommonJmethodJ(TakingJadvantageJofJemployeeJaccessJtoJblankJcompanyJch


ecks,JusingJaJpasswordJto

stealJcomputer-generatedJchecksJorJproducingJcounterfeitJchecks).



EmployeeJreimbursementJschemeJ-
JJCORRECTJANSWERSMakingJfalseJclaimsJforJreimbursementJorJinflatingJorJcreatingJfictitiousJbusine


ssJexpenses.J(TravelJ/mealJreimbursement.



CorruptionJ-JJCORRECTJANSWERSBribery,JillegalJgratuities,Jand/orJextortion.



BriberyJ-
JJCORRECTJANSWERSWhenJsomethingJofJvalueJisJofferedJorJgivenJtoJinfluenceJaJbusinessJdecision.




IllegalJGratuitiesJ-
JJCORRECTJANSWERSWhenJsomethingJofJvalueJisJgivenJtoJanJemployeeJtoJrewardJaJbusinessJdecisio


n.

,ExtortionJ-
JJCORRECTJANSWERSWhenJaJpersonJdemandsJpaymentJorJseeksJtoJinfluenceJaJbusinessJdecisionJbyJ


threatJofJharmJthroughJlossJofJbusinessJorJpersonalJinjury.



KickbackJSchemesJ-
JJCORRECTJANSWERSFormsJofJcorruptionJinvolvingJemployeesJandJvendors,JoftenJusingJinflatedJbill


ingJorJinvoicesJforJwhichJtheJemployeeJisJpaidJaJportionJofJtheJinflatedJorJfictitiousJinvoice.



CreditJCardJFraudJ-
JJCORRECTJANSWERSTheJcreation,Jsale,JorJuseJofJaJcounterfeitJcreditJcard,JorJtheJuseJofJaJstolenJcred


itJorJdebitJcard.



C.N.PJ-JJCORRECTJANSWERSCardJnotJpresentJtransactions



IdentityJTheftJ-
JJCORRECTJANSWERSTheJfraudulentJacquisitionJorJstealingJofJconfidentialJpersonalJinformationJthr


oughJsocialJengineering.



IdentityJFraudJ-
JJCORRECTJANSWERSInvolvesJtheJunauthorizedJuseJofJanotherJperson'sJpersonalJdataJforJillegalJfina


ncialJbenefit.JInvolvesJabusingJtheJstolenJinformationJtoJtransactJpersonalJbusinessJinJtheJvictim'sJn
ame.



WildcatJBankingJ-
JJCORRECTJANSWERSAnJextremeJformJofJwhatJwasJcalledJfreeJbanking.J"AJbankJthatJissuedJnotesJwi


thoutJadequateJsecurityJinJtheJperiodJbeforeJtheJestablishmentJofJtheJnationalJbankingJsystemJinJ1
864".



2JcategoriesJthatJencompassJFraudJ-
JJCORRECTJANSWERSTheftJ(stealingJmoney,JID,JorJassets)JandJdeceptionJ(cookingJtheJbooks,JlyingJto


Jshareholders,JemployeesJorJpartners)

, SavingsJandJLoanJCrisisJ-
JJCORRECTJANSWERSTheJfailureJofJaboutJ1000JsavingsJandJloanJbanksJasJaJresultJofJriskyJbusinessJpr


actices.JTheJrootsJofJtheJS&LJcrisisJlayJinJexcessiveJlending,Jspeculation,JandJrisk-
takingJdrivenJbyJtheJmoralJhazardJcreatedJbyJderegulationJandJtaxpayerJbailoutJguarantees.



MythJ#1JofJtheJFinancialJServicesJ-
JJCORRECTJANSWERS"WeJhaveJveryJlittleJfraudJhere"Jex:JsubprimeJmortgageJfraud




MythJ#2JofJFinancialJServicesJ-
JJCORRECTJANSWERS"EthicsJandJtrainingJcomplianceJhasJusJcovered"JFraudJisJnotJalwaysJcoveredJinJ


ethicsJpolicyJorJtraining.



MythJ#3JofJFinancialJServicesJ-
JJCORRECTJANSWERS"FraudJisJanJunavoidableJcostJofJdoingJbusiness"JFraudJisJusuallyJnotJseriousJen


oughJtoJdestroyJaJfinancialJserviceJfirm,JitJisJmuchJmoreJthanJnecessaryJcostJofJdoingJbusiness.



ChapterJ1JreviewJpointsJ-
JJCORRECTJANSWERS•JStatisticalJpictureJofJfraud.JTheJnumbersJdoJnotJlie:JFraudJisJaJhugeJworldwid


eJproblem—forJallJorganizations.J

•JFinancialJservicesJfraud.JSeventy-
fourJpercentJofJfinancialJinstitutionsJexperiencedJattemptedJpaymentJfraudJ(checkJfraud,JACHJfrau
d,JorJcreditJcardJfraudJinJ2020).J

•JDefinitionsJofJfraud.JTheJbroadJdefinitionJofJfraudJisJillegalJactivityJrepresentingJeitherJtheftJorJdec
eption,JorJaJcombinationJofJboth.J

•JMythsJaboutJfraud.JItJisJeasyJtoJbecomeJcomplacentJaboutJfraudJbutJdoingJsoJcanJbeJveryJcostly.JFr
audJdoesJoccurJinJeveryJorganizationJandJisJpotentiallyJseriousJenoughJtoJcauseJmajorJlong-
termJdamage.J

•JMainJtypesJofJfraud.JCountlessJvarietiesJofJfraudJthreatenJfinancialJinstitutions.JFraudstersJareJco
nstantlyJthinkingJupJnewJwaysJtoJtargetJfinancialJservicesJinstitutions.