CVA CVA Risk Assessment & Fraud Detection 2

Question 1

What distinguishes a hard fraud indicator from a soft fraud indicator in CVA assessments?

Accepted Answer

Hard indicators are definitive evidence of fraud; soft indicators suggest further scrutiny is needed

Answer

Hard indicators relate to financial documents only

Answer

Soft indicators are reported to law enforcement immediately

Answer

Hard indicators are gathered only during field visits

Question 2

A CVA agent finds a document with altered dates. What category of fraud does this represent?

Accepted Answer

Document tampering

Answer

Identity theft

Answer

Perjury

Answer

Systemic fraud

Question 3

Which internal control helps prevent conflicts of interest during CVA risk assessments?

Accepted Answer

Rotating verifiers so agents do not repeatedly handle the same claimant's cases

Answer

Allowing agents to self-report suspected fraud

Answer

Permitting supervisors to override risk scores without documentation

Answer

Reducing the number of required sign-offs

Question 4

Under CVA standards, how should an agent handle a suspected fraudulent claim that lacks sufficient evidence to confirm fraud?

Accepted Answer

Flag it as suspicious, document findings, and continue monitoring

Answer

Deny the claim based on suspicion alone

Answer

Approve the claim to avoid false accusations

Answer

Close the file without notation

Question 5

Which data anomaly technique do CVA agents use to identify outliers in large verification datasets?

Accepted Answer

Benford's Law analysis to detect unnatural digit distributions

Answer

Simple arithmetic averaging of all submitted values

Answer

Alphabetical sorting of claimant names

Answer

Reviewing only the largest and smallest values

Question 6

What is 'collusion' in the context of CVA fraud detection?

Accepted Answer

Two or more parties cooperating to deceive the verification process

Answer

A claimant submitting duplicate documents

Answer

An agent missing a verification deadline

Answer

A supervisor approving a disputed claim