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 #1

Which of the following scenarios describes a card skimming or shimming scheme?

A. After processing a customer's payment, a server returns with the receipt but keeps the payment card hoping that the customer does not notice.

B. While processing a payment concealed from the customer's view, a retail employee uses a small device to scan and record the customer's payment card information.

C. None of the above.

D. An imitation website is created to deceive users into providing their payment card information.

Discussion 0

Correct Answer: B Vote an answer

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Question #2

Which of the following is a method of identity theft prevention that is recommended for businesses?

A. Use government identification numbers as employee identification numbers

B. Collect government identification numbers from customers only when legally required to gather that information

C. Use encryption only when sending personal information externally through a hardwired internet connection

D. Audit practices involving the handling of information only when regulators require it

Discussion 0

Correct Answer: B Vote an answer

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Question #3

Which of the following is NOT one of the information security goals that should be achieved to secure an e- commerce system for users and account holders?

A. Availability of data

B. Accuracy of data

C. Non-repudiation

D. Authentication

Discussion 0

Correct Answer: B Vote an answer

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Question #4

A __________ is a day-by-day, or chronological, record of transactions.

A. Journal

B. Asset

C. Checkbook

D. Ledger

Discussion 0

Correct Answer: A Vote an answer

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Question #5

Which of the following scenarios is the MOST ACCURATE example of insurer health care fraud?

A. While acting as an intermediary for a government health care program, the insurance company verifies provider claims before billing the government for them.

B. After negotiating discounts with its medical providers, the insurance company provides the negotiated rate to its consumers instead of the original amount.

C. Upon identifying that a claimant has provided incomplete information, the insurance company refuses to pay a claim.

D. To obtain regulatory approval for increasing its rates, the insurance company submits inflated cost data for review.

Discussion 0

Correct Answer: D Vote an answer

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Question #6

Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor's side of the transaction who is not making an illicit payment.

A. False

B. True

Discussion 0

Correct Answer: A Vote an answer

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Question #7

In which phase of the competitive bidding process do fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?

A. False specification

B. Submission

C. Need recognition

D. Solicitation

Discussion 0

Correct Answer: D Vote an answer

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Question #8

__________ inventory and other assets is a relatively common way for fraudsters to remove assets from the books before or after they are stolen.

A. Altered

B. False shipping slip

C. Write-offs

D. Perpetual

Discussion 0

Correct Answer: C Vote an answer

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Question #9

Fraudsters use the accounting system as a tool to generate the results they want in ___________ approach:

A. Playing the accounting

B. Beating accounting

C. Organized accounting

D. All of the above

Discussion 0

Correct Answer: A Vote an answer

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Question #10

Which of the following actions would balance the accounting equation to conceal the misappropriation of cash?

A. Creating fictitious revenue

B. Increasing a liability

C. Increasing owners' equity

D. Increasing another asset

Discussion 0

Correct Answer: B Vote an answer

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Question #11

Which of the following is TRUE regarding pyramid schemes?

A. All pyramid organizational structures are illegal

B. None of the above

C. An illegal pyramid scheme is modeled to pay off its earliest investors but not its later investors

D. The goal that participants of pyramid schemes have is to sell worthless products to friends and family

Discussion 0

Correct Answer: C Vote an answer

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Question #12

Which of the following statements describes a best practice for preventing contract and procurement fraud?

A. Companies should have vendor-monitoring procedures that address the red flags of all vendor schemes.

B. Companies should restrict the monitoring of their procurement activities to once a year to ensure comparability from year to year.

C. Companies should conduct background checks on all vendors before they are added to the vendor master file.

D. Companies should permit the person who maintains the vendor master file to also have authority to approve payments for invoices.

Discussion 0

Correct Answer: C Vote an answer

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Question #13

Conflict of interest cases are more easily prevented than detected.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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