ACFE Consumer Fraud and Identity Theft — Questions and Answers
Question 1: A victim is told they have won a lottery but must first pay 'taxes and processing fees' before receiving the prize. This is an example of:
- An advance-fee scheme (Correct answer)
- A pyramid scheme
- Pretexting
- A shell-company scheme
Correct answer: An advance-fee scheme
Advance-fee schemes require victims to pay upfront for a promised reward, loan or prize that never arrives.
Question 2: Obtaining personal information by impersonating a trusted party over the phone, for example posing as a bank employee, is known as:
- Pretexting (Correct answer)
- Skimming
- Dumpster diving
- Shoulder surfing
Correct answer: Pretexting
Pretexting uses a fabricated scenario or false identity to persuade a target to reveal sensitive information.
Question 3: Which describes 'account takeover' identity theft?
- A criminal gains control of a victim's existing account and changes its contact details (Correct answer)
- A criminal opens new accounts using a fabricated identity
- A criminal steals mail from a mailbox
- A criminal clones a payment card at a terminal
Correct answer: A criminal gains control of a victim's existing account and changes its contact details
In account takeover, the fraudster hijacks an existing account, often by changing the address or credentials, rather than creating new accounts.
Question 4: Synthetic identity fraud involves:
- Combining real and fabricated information to create a new fictitious identity (Correct answer)
- Copying a victim's full identity exactly
- Using a deceased relative's name only
- Altering a credit card's magnetic stripe
Correct answer: Combining real and fabricated information to create a new fictitious identity
Synthetic identities blend real data (such as a genuine SSN) with fake details to build credit profiles that no single real person owns.
Question 5: A phishing email that targets a specific executive using personal details is best called:
- Spear phishing (Correct answer)
- Smishing
- Vishing
- Pharming
Correct answer: Spear phishing
Spear phishing is a targeted phishing attack customized to a specific individual or organization, and 'whaling' refers to such attacks on senior executives.
Question 6: What is the key characteristic that distinguishes a Ponzi scheme from a pyramid scheme?
- Ponzi returns come from new investors' money, while pyramid payouts depend on recruiting participants (Correct answer)
- Ponzi schemes are legal, pyramids are not
- Pyramid schemes involve no victims
- Ponzi schemes require physical products
Correct answer: Ponzi returns come from new investors' money, while pyramid payouts depend on recruiting participants
A Ponzi scheme pays earlier investors with funds from newer investors under the pretense of investment returns. A pyramid scheme pays participants for recruiting others.
