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 fraud indicators constitute definitive evidence requiring escalation, while soft indicators are patterns warranting additional investigation.

Question 2

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

Accepted Answer

Document tampering

Answer

Physically or digitally altering dates on submitted documents constitutes document tampering, a specific category of 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

Rotating agents across cases prevents familiarity bias and conflicts of interest that could compromise objective risk assessment.

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

Without sufficient evidence, agents must flag suspicions, document all findings thoroughly, and continue monitoring rather than making final determinations.

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

Benford's Law analysis detects unnatural digit frequency distributions in financial datasets, a widely used fraud detection technique.

(CVA) Certified Verification Agent Practice Test

(CVA) Certified Verification Agent Practice Test

CVA CVA Risk Assessment & Fraud Detection 2