OIC Financial Crimes & Fraud Investigation 2

Question 1

What is 'embezzlement'?

Accepted Answer

Misappropriation of assets by someone entrusted with them

Answer

Theft of funds from a stranger through deception

Answer

Fraudulent transfer of real property titles

Answer

Using counterfeit currency to purchase goods

Question 2

What is 'check kiting'?

Accepted Answer

Floating checks between accounts to artificially inflate balances

Answer

Forging signatures on checks to cash them fraudulently

Answer

Altering the dollar amount on a legitimately issued check

Answer

Stealing blank checks and using them for unauthorized purchases

Question 3

In a Ponzi scheme, how are returns paid to earlier investors?

Accepted Answer

From funds collected from newer investors

Answer

From legitimate business profits generated by the scheme

Answer

From government-backed financial instruments

Answer

From proceeds of stock market investments

Question 4

What distinguishes a Pyramid scheme from a Ponzi scheme?

Accepted Answer

In a Pyramid scheme, participants are required to actively recruit new members to earn returns

Answer

Pyramid schemes always involve cryptocurrency while Ponzi schemes use cash

Answer

Ponzi schemes are illegal while Pyramid schemes are regulated but legal

Answer

Pyramid schemes target only institutional investors unlike Ponzi schemes

Question 5

What is 'wire fraud' under federal law?

Accepted Answer

Using electronic communications to execute a fraudulent scheme

Answer

Tampering with electrical transmission infrastructure for financial gain

Answer

Hacking into banking systems to steal funds electronically

Answer

Intercepting wire transfers to divert funds

Question 6

What is 'asset forfeiture' in the context of financial crime investigations?

Accepted Answer

The legal process by which government seizes assets connected to criminal activity

Answer

The liquidation of a defendant's assets to pay court-ordered fines

Answer

A voluntary surrender of assets by a defendant in exchange for reduced charges

Answer

The court-ordered freezing of accounts pending trial

Question 7

Which type of financial document is most commonly subpoenaed during a fraud investigation to trace the flow of funds?

Accepted Answer

Bank statements and financial records

Answer

Insurance policy declarations

Answer

Employment verification letters

Answer

Tax preparation software logs