Free ACFE CFE-Financial-Transactions-and-Fraud-Schemes Practice Test & Real Exam Questions

Exam Code/Number: CFE-Financial-Transactions-and-Fraud-Schemes
Exam Name/Title: Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam
Certification Provider: ACFE
Corresponding Certification: Certified Fraud Examiner

Exam Questions: 237
Updated On: Sep 29, 2026

Question #14

Which of the following statements about skimming is CORRECT?

A. Skimming schemes are generally less difficult to detect than cash larceny schemes.

B. Skimming schemes are considered on-book frauds because they leave an audit trail.

C. Skimming schemes involve stolen customer payments that were not recorded.

D. Skimming schemes involve the theft of cash sales but not accounts receivable payments.

Discussion 0

Correct Answer: C Vote an answer

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Question #15

Cynthia receives a fraudulent text message that appears to be from her credit card company. The message claims that the company has detected suspicious card transactions and provides a link for her to click to sign into her account for more information. Cynthia is MOST LIKELY being targeted by which of the following types of social engineering schemes?

A. Smishing

B. Catfishing

C. Pharming

D. Vishing

Discussion 0

Correct Answer: A Vote an answer

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Question #16

Which of the following offender types are people who take the money and run away?

A. Offender types

B. None of the above

C. Long-term violators

D. Absconders

Discussion 0

Correct Answer: D Vote an answer

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Question #17

If the assets are intentionally purchased by the company but simply misappropriated by the fraudster, this is referred to as:

A. Inventory larceny scheme

B. Asset receiving scheme

C. Falsify shipping

D. Fraudulent purchase

Discussion 0

Correct Answer: D Vote an answer

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Question #18

The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question #19

Jonathan, a Certified Fraud Examiner (CFE), is tasked with identifying potential indicators of intrusion into his employer's computer network. Which of the following might indicate that the organization's network has been compromised or accessed without authorization?

A. The network is receiving data from a country where one of the organization's suppliers is located.

B. When logging into the computer network, employees receive a reminder to change their log-in passwords before they expire.

C. Network users are prompted to install unfamiliar software onto their computers.

D. Users are denied access to network files they do not typically use in their organizational role.

Discussion 0

Correct Answer: C Vote an answer

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Question #20

____________ is a summary of the account balances carried in a ledger.

A. Financial statement

B. Balance sheet

C. Income statement

D. General journal

Discussion 0

Correct Answer: B Vote an answer

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Question #21

Which of the following is NOT a distinguishing characteristic of a Ponzi scheme?

A. Promoters of Ponzi schemes promise investors uncommonly high returns.

B. Participants are paid based on the number of new investors that they recruit.

C. Participants believe that they are making a legitimate investment.

D. Promoters of Ponzi schemes engage in minimal amounts of valid commerce or investments.

Discussion 0

Correct Answer: B Vote an answer

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Question #22

The most basic skimming scheme occurs when:

A. An employee sells goods or services to a stakeholder, collects the stakeholder's payment and makes record of the sale too.

B. An employee buys goods or services from a stakeholder, drops the stakeholder's payment and makes record of the purchase too.

C. An employee buys goods or services from a customer, drops the customer's payment, but makes no record of the purchase.

D. An employee sells goods or services to a customer, collects the customer's payment, but makes no record of the sale.

Discussion 0

Correct Answer: D Vote an answer

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Question #23

Which of the following is a recommended activity that organizations should engage in to protect their proprietary information from threats?

A. Enlisting a company task force to identify the information security practices of competitors

B. Prohibiting all nonemployees from entering the organization's premises

C. Practicing data minimization to limit the information available during a data breach

D. Storing devices that contain sensitive data in specially constructed quiet rooms

Discussion 0

Correct Answer: C Vote an answer

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Question #24

Which of the following is an insurance fraud detection tool used for identifying funds fraudulently sent to fictitious payees by using computer-generated reports to compare payments sent to the same location?

A. Address similarity reports

B. Duplicate payment lists

C. Exception reports

D. Electronic confirmations

Discussion 0

Correct Answer: A Vote an answer

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Question #25

Which of the following fraud schemes is MOST LIKELY to target members of a religious community?

A. Affinity fraud

B. Social control fraud

C. Bait and switch scheme

D. Advance-fee scheme

Discussion 0

Correct Answer: A Vote an answer

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Question #26

According to Hollinger and Clark, for policy development, management must pay attention to:

A. Neither A nor B

B. Enforcement of sanctions

C. A clear understanding regarding theft behavior

D. Both A & B

Discussion 0

Correct Answer: D Vote an answer

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