Financial Crimes & Fraud Investigation Flashcards

What role does forensic accounting play in a financial crimes investigation?

Answer: It applies accounting and auditing skills to analyze financial evidence for legal proceedings

Forensic accounting combines accounting, auditing, and investigative skills to examine financial records for evidence of fraud or criminal activity, providing findings that can be used in court.

What is 'skimming' in the context of financial fraud?

Answer: Removing cash from a business before it is recorded in the accounting system

Skimming is an off-book fraud where cash receipts are stolen before they are entered into an organization's accounting records, making it particularly difficult to detect through standard audits.

What is 'phishing' in the context of financial crimes?

Answer: Using deceptive electronic communications to trick victims into revealing financial credentials

Phishing is a social engineering attack where criminals use deceptive emails, texts, or websites that appear legitimate to trick victims into providing financial account credentials, passwords, or personal identifying information.

What is the general federal statute of limitations for wire fraud and bank fraud offenses?

Answer: 10 years from the date of the offense

Under federal law, the statute of limitations for wire fraud (18 U.S.C. § 1343) and bank fraud (18 U.S.C. § 1344) is generally 10 years from the date of the offense.

In financial fraud investigations, what does the term 'layering' refer to?

Answer: Creating complex layers of financial transactions to obscure the origin of illicit funds

Layering is the second stage of money laundering, involving a series of complex financial transactions designed to put distance between illicit funds and their criminal source, making the paper trail difficult to follow.

Which of the following best describes 'identity theft' as it relates to financial crimes?

Answer: Fraudulently obtaining and using another person's personal identifying information for financial gain

Identity theft in the financial crime context involves obtaining another person's personally identifiable information—such as Social Security numbers, account numbers, or passwords—and using it to fraudulently access accounts or obtain credit.

When conducting a financial fraud investigation in Oregon, which state agency has primary regulatory authority over financial institutions and can assist with financial crime investigations?

Answer: Oregon Division of Financial Regulation (DFR)

The Oregon Division of Financial Regulation (DFR), part of the Department of Consumer and Business Services, regulates Oregon financial institutions and can provide regulatory support and records access in financial crime investigations.