ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Dumps

Rationale for Correct Answer: A ghost employee scheme occurs when someone (real

Analysis of Incorrect Options:

A -- The ghost may be fictitious or a real former employee.

B -- Employment classification is irrelevant.

C -- A ghost could be a current, terminated, or entirely fictitious employee.

Key Concept: Payroll fraud -- ghost employee schemes.

The correct answer is A. The facts indicate a possible nonconforming goods scheme, in which a vendor provides goods that fail to meet contract specifications while charging as though compliant goods were supplied. The most effective detection measure before customer complaints would have been an inspection of the glass upon receipt, including its packaging, appearance, description, and conformity with the contract. This control helps identify substitutions, inferior materials, counterfeit goods, or products of lower quality than promised. Option B is indirect and less reliable than inspecting the goods. Option C relates to change order abuse rather than quality substitution. Option D focuses on the vendor's internal cost data and would not directly confirm whether the delivered glass met CTR's contract specifications.

The best practice is to identify employees leaving the company who have downloaded an unusually large number of data files. Departing employees present a heightened risk of proprietary information theft because they might take customer lists, pricing data, product designs, research, formulas, source code, or strategic plans for use with a competitor or new venture. Monitoring abnormal downloading activity is a targeted detective control that focuses on actual access and extraction of sensitive data. Options A and C rely on external competitor activity and might reveal only indirect indicators after damage occurs. Option B is too broad because permitted access alone does not show theft. The ACFE material emphasizes insider threats, safeguarding proprietary information, and monitoring unusual access or transfer of sensitive data.

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The correct answer is A. Electronic funds transfer fraud involves the misuse of electronic payment systems to move money improperly. A vendor submitting an electronic bill through a client's online payment system for services not provided is a fraudulent use of electronic bill presentment or payment processes. Option B is payroll fraud, specifically falsified hours or salary. Option C involves theft and misuse of prepaid cards, not EFT manipulation by the payee. Option D describes payment card skimming, where card information is captured for later unauthorized use. The ACFE materials discuss electronic funds transfers, wire transfer fraud, electronic bill presentment and payment, and detection of EFT fraud as part of payment fraud risk.

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Rationale for Correct Answer: Administrative security controls involve policies,

Analysis of Incorrect Options:

A . Technical security controls -- These are automated safeguards (e.g., firewalls, encryption).

B . Logical access controls -- Restrict access to systems through passwords, tokens, or biometrics.

D . Physical access controls -- Restrict physical access (e.g., locks, guards, CCTV).

Key Concept: Layers of security controls (administrative, technical, physical).