Fraud Chap 9-10

Although most perpetrators begin their thefts because
of a perceived critical need, they usually continue
to embezzle in order to:
A. Beat the system.
B. Improve their lifestyle.
C. Fulfill an inner desire to commit fraud.
D. Achieve a higher self-esteem.

Evidence gathered from public records can be useful in:
A. Identifying with the suspect.
B. Obtaining a confession.
C. Making the suspect feel at ease.
D. None of the above.

The net worth method of analyzing financial information can help to determine:
A. The amount of embezzled funds.
B. Possible perpetrators of the fraud.
C. The suspect’s personality characteristics.
D. The suspect’s feelings about the organization.

Which of the following organizations maintain
public information that can be accessed in record
searches?
A. Local agencies.
B. State agencies.
C. Federal agencies.
D. All of the above.

How useful are local and county records in fraud investigations?
A. Not useful.
B. Aren’t allowed in the investigation of fraud.
C. Somewhat useful.
D. Very useful.

Which of the following laws regulates activities of credit, insurance, and employment investigations?
A. Fair Investigation Act of 1980.
B. Credit, Insurance, and Employment Investigation Act.
C. There is no governing law.
D. Fair Credit Reporting Act of 1971 and Fair and Accurate Credit Transactions Act of 2003.

The net worth method is effective:
A. As evidence in court.
B. To help obtain a confession.
C. To conduct an interview of suspects.
D. All of the above.

Conversion investigations focus on how suspects:
A. Had motives to commit fraud.
B. Spent stolen money.
C. Had opportunities to steal.
D. Committed the actual theft.

Which of the following is a possible use of
conversion-based investigation techniques?
A. Searching public records to trace purchases of assets and payments of liabilities.
B. Attempting to locate previous spouses’ bank account records.
C. Locating significant amounts of money held by related parties.
D. All of the above.

Most conversion investigations involve searching
public records and other sources to trace:
A. Purchases of assets.
B. Payments of liabilities.
C. Changes in lifestyle.
D. Net worth.
E. All of the above.

A database of criminal records maintained by the
FBI is:
A. The CIA.
B. The III.
C. The NCIC.
D. Both a and c.
E. Both b and c.

Who among the following are usually some of the
best and most helpful federal fraud investigators?
A. Officers of the Secret Service.
B. Officers of the Department of Vital Statistics.
C. Postal inspectors.
D. Employees of the Federal Bureau of Prisons.

Which source could be used to access valuable
financial information in a fraud investigation?
a. Financial institutions.
b. Internet sites.
c. The former spouse of a suspected fraud
perpetrator.
d. Trash.
e. All of the above.

The net worth method is a calculation based on a
person’s:
A. Assets, income, and living expenses.
B. Assets, liabilities, income, and living expenses.
C. Assets, liabilities, equity, and living expenses.
D. Assets, liabilities, equity, and income.

The formula to calculate funds from unknown sources is:
A. Assets − Liabilities − Prior Year’s NetWorth + Living Expenses + Funds from Unknown Sources.
B. Assets − Liabilities − Prior Year’s Net Worth +Living Expenses − Funds from Known Sources.
C. Assets − Liabilities − Prior Year’s Net Worth −Living Expenses − Funds from Unknown Sources.
D. Assets − Liabilities − Prior Year’s Net Worth −Living Expenses + Funds from Unknown Sources.

The Gramm-Leach-Bliley Act allows:
A. Banks to sell customer information.
B. Financial institutions to share information.
C. Customers to “opt out” and ask that their information not be shared.
D. All of the above.

Each of these agencies is correctly matched with the
type of information the agency provides except:
a. Department of Justice: Maintains records relating to the detection, prosecution, and rehabilitation of offenders.
b. The Secret Service: Deals with counterfeiting, theft of government checks, interstate credit
card violations, and some computer crimes.
c. State Attorney General: Maintains birth records and information about people’s SSNs.
d. CIA: Investigates security matters outside the United States.
e. Department of Business Regulation: Maintains licensing information about various professionals.

Each of these statements is true about the net worth
method for determining embezzled amounts except:
A. The net worth method is useful for obtaining confessions from suspects during interviews or interrogations.
B. Courts are generally suspicious of dollar amounts determined by the net worth method because courts realize that the net worth method can only provide approximations of the amount stolen.
C. The net worth method generally understates amounts stolen.
D. Much of the information necessary for determining an individual’s assets, liabilities, living expenses, and income is available through public searches.

Under the net worth method, a person who has an increase
in net worth of $100,000, known expenses of
$80,000, and a salary of $60,000 would have an unknown income of:
A. $140,000.
B. $0.
C. $120,000.
D. $110,000.

Known income subtracted from total income gives a reasonable estimate of:
A. Unknown funds.
B. Liabilities.
C. Net worth.
D. Living expenses.

Conversion searches are performed for which of the following reasons?
I. To determine the extent of embezzlement.
II. To gather evidence that can be used to obtain a confession.
A. I only
B. II only
C. Neither I nor II
D. I and II

Public record searches include:
I. Google.
II. utility records.
III. trash cover.
A. I and II only
B. II and III only
C. I, II, and III
D. I and III only
E. Neither I, II, nor III

Most public records maintained by federal, state, and local governmental agencies are protected under privacy laws that prevent disclosure to the public.
True   
False
True False

Regarding government sources of information:
A. federal records are generally not as useful as state records in fraud investigations.
B. military records are confidential and require a subpoena to access.
C. IRS records are readily available to the public and are very useful in fraud investigations.
D. accessing federal records is generally inexpensive.

The Postal Service:
A. is responsible for protecting people from loss through theft that involves the mail.
B. All of the choices are true of the Postal Service.
C. through its Postal Inspectors, enforces state and local mail statutes.
D. is a private-sector organization responsible for U.S. mail.

Social Security numbers:
A. although unique, the same number can be assigned to more than one person so long as they live in different states.
B. are published monthly by the government when they are considered "dead."
C. contain information about where a person lives and works.
D. can be changed or updated for a small fee.

If information is available and accessible, a fraud investigator has the right to gather and use the evidence.
True   
False
True False

Credit reporting agencies:
A. must, on request, furnish information to an employer that is also furnished to employees.
B. are used primarily by police and other investigative entities.
C. include Gramm-Leach Bliley, Inc. and Transfax.
D. maintain information about family members, income levels, and buying habits.

Advanced techniques for searching Google and other search engines include all of the following except:
A. Google Earth.
B. Google Hacks.
C. Google Images.
D. Google News.

The net worth method includes which of the following equations/relationships?
A. Net Worth + Net Worth Increase = Living Expenses
B. Assets + Liabilities = Net Worth
C. Income = Net Worth Increase + Living Expenses
D. Funds from Unknown Sources = Living Expenses + Assets

Which of the following is not a method of honesty testing?
A. Body language test.
B. Graphology.
C. Pencil-and-paper test.
D. Voice stress analysis.

Interviews should not be conducted with:
A. Interviews can be conducted with all of the
B. Clients.
C. Coworkers.
D. Suspects.
above.

People in the rationalization stage of reaction to a fraud:
A. Have no sympathy for the suspect.
B. Believe without a doubt that the suspect is guilty.
C. Make great interviewees because they want to punish the suspect.
D. Want to give the suspect one more chance.

Planning for interviews should not involve:
a. Judging the guilt of the suspect based on
available documents.
b. Establishing a location and time for the
interview.
c. Ascertaining in advance as many facts as
possible about the offense.
d. Understanding the attitude of the interviewee.

Confrontational interviews should usually be conducted
when:
A. The examiner is starting the investigation.
B. Police decide that the suspect is guilty.
C. All other investigative procedures have been completed.
D. The investigation is taking too long.

Which of the following is not an inquiry technique that should be used by interviewers?
A. Use short questions, confined to one topic.
B. Maintain full control of the interview.
C. Point out some, but not all, of the circumstantial evidence.
D. All of the above are good inquiry techniques in an interview.

Which of the following honesty testing techniques deals with the study of handwriting for the purpose of character analysis?
A. Polygraph.
B. Graphology.
C. Pencil-and-paper test.
D. Voice stress.
E. None of the above.

Which of the following traits do polygraphs not measure when testing for stress?
A. Pulse rate.
B. Blood pressure.
C. Galvanic skin response.
D. Respiration.
E. All of the above are traits measured during a polygraph test.

Interviewing is:
a. The systematic questioning of individuals who have knowledge of events, people, and evidence involved in a case under investigation.
b. The process of answering questions from an interviewer for the purpose of finding a job.
c. By far the most common technique used in
investigating and resolving fraud.
d. Both a and c.
e. None of the above.

Which of the following is the typical sequence of
reactions to a crisis?
a. Anger, denial, rationalization, depression,
acceptance.
b. Rationalization, denial, anger, depression,
acceptance.
c. Denial, anger, rationalization, depression,
acceptance.
d. Depression, denial, anger, rationalization,
acceptance.
e. None of the above.

Which of the following reactions frequently involves
appearing temporarily stunned, insisting
there is some mistake, or not comprehending
what has been said?
A. Rationalization.
B. Acceptance.
C. Depression.
D. Anger.
E. Denial.

Which of the following is a characteristic of a good interview?
A. Make the interview as concise as possible.
B. Friendly interviewees appear very helpful, but they may have hidden motives and may provide bad information.
C. It is important to schedule interviews ahead of time, especially if you are planning to interview a potentially hostile interviewee.
D. The interviewer should announce his or her bias at the outset, because the interviewee will cooperate better when the interviewee knows the type of information the interviewer is seeking.

Each of the following is a clue that an interviewee is dishonest except:
A. Liars often refuse to implicate possible suspects—or, in other words, honest people are more willing to name others involved in
B. In order to add credibility to false statements, liars request that the interviewer obtain character testimony from other people.
C. Upon repeated accusations, a dishonest person’s denials become more vehement.
misdeeds.
d. Dishonest people frequently cover their
mouths with their hands or fingers during
deception.

Which of the following is something that an interviewee
might do or feel while in the denial phase?
A. Attempt to justify the act.
B. Insult, harm, or slander.
C. Become sad, withdraw, or lose interest.
D. Not comprehend what has been said.

Which of the following is not a good thing to do during an interview?
A. Interview more than one person at once.
B. Establish the purpose of the interview.
C. Do not invade body space.
D. Conduct the interview in private.

A signed statement should include all of the following except:
a. A statement that the fraudster knew the conduct was wrong and intended to commit the act.
b. The date the fraudster was hired by the
company.
c. Approximate amount of losses.
d. Approximate date of the offense.

Nonverbal cues of deception include all of the
following except:
A. Repetition of the question.
B. Raised chin.
C. Decreased foot and leg movements.
D. Dilated pupils.

Arrange in order the stages that people generally go through in reaction to a crisis.
I. Anger
II. Denial
III. Acceptance
IV. Depression
V. Rationalization
A. I, II, V, III, IV
B. II, V, IV, I, III
C. I, II, III, IV, V
D. II, I, V, IV, III

As a general rule, it's usually best to conduct all interviews in the fraud examiner's office so that distractions are minimized.
True   
False
True False

All of the following are specific guidelines for a successful interviewer, except:
A. clearly understand each answer before continuing with the interview.
B. require direct responses.
C. maintain full control of the interview.
D. utilize leading questions.

Which of the following types of questions are used in routine interviews?
I. Assessment
II. Informational
III. Introductory
IV. Admission-seeking
A. I, II, III, and IV
B. I and III only
C. I, III and IV only
D. II and III only

Inhibitors of conversation include all of the following except:
A. ritual.
B. inferential confusion.
C. forgetting.
D. trauma.

Informational questions are designed to:
I. establish the interview theme.
II. establish rapport.
III. assess culpability.
A. I, II, and III
B. I and II only
C. II and III only
D. Neither I, II, nor III

How body movements convey meaning is the study of:
A. miranda.
B. kinetics.
C. chronemics.
D. calibration.

"Is this the first time you have taken from the company? Is this the first time you have created an overdraft?" are examples of what type of questions?
A. Accusatory
B. Open
C. Calibrating
D. Assessment

Signed statements:
A. should include a statement that the confession is being coerced.
B. as a general rule should not include words such as "lie" and "steal."
C. are generally 5 - 10 pages in length in order to include all necessary details and facts.
D. must be prepared by the fraud perpetrator in his/her own handwriting.

The study of handwriting for the purpose of character analysis is:a.
a polygraph.
b.graphology.
c.pencil-and-paper testing.
d.calibration.