Fraud Trivia Answers

Each month we include a Fraud Trivia Question in the Veriti Consulting eNewsletter. View the answers below:

JULY 2019  TRIVIA

Question: Which fraud scheme typically lasts the longest before being uncovered?

  • (A) Skimming
  • (B) Check and Payment Tampering
  • (C) Register Disbursements
  • (D) Payroll — This is the correct answer
  • (E) Financial Statement Fraud

(Payroll 30 months, Check and Payment Tampering 24 months, Financial Statement Fraud 24 months, Skimming 18 months, Register Disbursements 12 months)

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

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JUNE 2019  TRIVIA

Question: What type of organization is victimized the most by occupational fraud?

  • (A) Government
  • (B) Non-Profit
  • (C) Private Company — This is the correct answer
  • (D) Public Company
  • (E) Other

(Private Company 42%, Public Company 29%, Government 16%, Not-for-Profit 9%, Other 4%)

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

MAY 2019  TRIVIA

Question: What method is still the most popular when whistleblowers use a reporting mechanism to report fraud?

  • (A) Email
  • (B) Web-based online form
  • (C) Mailed letter/form
  • (D) Telephone hotline — This is the correct answer
  • (E) Other

(Telephone hotline 42%, Email 26%, Web-based/online form 23%, Mailed letter/form 16%, Other 10%)

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

APRIL 2019  TRIVIA

Question: What is the top concealment method used by fraudsters?

  • (A) Created fraudulent physical documents. — This is the correct answer
  • (B) Created fraudulent transactions in the accounting system.
  • (C) Altered transactions in the accounting system.
  • (D) Destroyed physical documents.

(A – 55%, B – 42%, C – 34%, D – 30%; most fraudsters use a combination of methods)

MARCH 2019  TRIVIA

Question: What percentage of fraudsters displayed at least one behavioral red flag (such as living beyond means, wheeler-dealer attitude, unusually close association with vendor/customer, having financial difficulties, control issues, or divorce/family issues)?

  • (A) 55%
  • (B) 70%
  • (C) 85% — This is the correct answer
  • (D) 100%

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

FEBRUARY 2019  TRIVIA

Question: Which is the top behavioral red flag displayed by fraud perpetrators?

  • (A) Control issues/unwillingness to share duties.
  • (B) Living beyond means — This is the correct answer
  • (C) Unusually close association with vendor/customer
  • (D) “Wheeler-dealer” attitude
  • (E) Financial difficulties
  •  (F) Divorce/family issues

(Living beyond means 41%, financial difficulties 29%, unusually close associations with vendor/customer 20%, control issues/unwillingness to share duties 15%, divorce/family issues 14%, “wheeler-dealer” attitude 13%)

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

JANUARY 2019  TRIVIA

Question: What size organization has the most median loss on average due to fraud?

  • (A) < 100 employees — $200,000 — This is the correct answer
  • (B) <100 – 999 employees — $100,000
  • (C) < 1,000 – 9,999 employees —  $100,000
  • (D) < 10,000 + employees  — $132,000

(Due to fewer resources to both prevent and recover from a fraud, small businesses lose almost twice as much to fraud as larger sized businesses.)

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

DECEMBER 2018  TRIVIA

Question: What is the average duration of an occupational fraud scheme?

  • (A) 12 Months
  • (B) 16 Months — This is the correct answer
  • (C) 20 Months
  • (D) 24 Months
  • (E) 48 Months

(The median duration of an occupational fraud scheme is 16 months.)

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

NOVEMBER 2018  TRIVIA

Question: What industry averages the highest annual median loss due to fraud?

  • (A) Banking and Financial Services
  • (B) Government
  • (C) Communications and Publishing — This is the correct answer
  • (D) Real Estate
  • (E) Retail

(Average annual median loss by industry: Banking and Financial Services $110,000; Government $125,000; Communications and Publishing $525,000; Real Estate $180,000; Retail $50,000.)

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

OCTOBER 2018  TRIVIA

Question: If a background check was run on a fraud perpetrator prior to hiring, what percentage revealed any red flags?

  • (A) 10% — This is the correct answer
  • (B) 25%
  • (C) 50%
  • (D) 90%

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

SEPTEMBER 2018  TRIVIA

Question: What region reported the highest average median loss due to fraud?

  • (A) Surveillance
  • (B) Tip – 40% — This is the correct answer
  • (C) Internal/External Audit
  • (D) Management Review
  • (E) By Accident
  • (F) Account Reconciliation

(Tip 40%, Audit 19%, Management Review 13%, By Accident 7%, Account Reconciliation 5%, Surveillance 3%, Other 13%)

AUGUST 2018  TRIVIA

Question: What region reported the highest average median loss due to fraud?

  • (A) U.S. – $108,000
  • (B) Western Europe – $200,000
  • (C) Latin America and the Caribbean – $193,000
  • (D) Asia and Pacific – $236,000 — This is the correct answer
  • (E) Eastern Europe and Western and Central Asia – $150,000

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

JULY 2018  TRIVIA

Question:Which occupational level causes the highest amount of median loss due to fraud in the US?

  • (A) Employee
  • (B) Manager
  • (C) Owner/Executive — This is the correct answer.

(Employee $50,000; Manager $150,000; Owner/Executive $637,000)

JUNE 2018  TRIVIA
Question: What industry had the most fraud cases in 2017?
  • (A) Manufacturing
  • (B) Healthcare
  • (C) Education
  • (D) Banking and Financial Services  — This is the correct answer

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

MAY 2018  TRIVIA
Question: What were the estimated total losses due to fraud in 2017?
  • (A) $2.6 Billion
  • (B) $700 Million
  • (C) $7.1 Billion  — This is the correct answer
  • (D) $20.5 Billion

Reference: Report to the Nations 2018 Global Fraud Study, published by the Association of Certified Fraud Examiners.

APRIL 2018  TRIVIA
Question: In 2016, what method did whistleblowers use the most in order to report fraud?
  • (A) Email
  • (B) Telephone Hotline — This is the correct answer
  • (C) Online Form
  • (D) Mailed Letter

Reference: Report to the Nations 2016 Global Fraud Study, published by the Association of Certified Fraud Examiners.

MARCH 2018  TRIVIA

Question: In 2016, approximately 50% of the fraud victim organizations ran background checks on the perpetrators prior to hiring them. What percent of those background checks revealed red flags or prior misconduct?

  • (A)  11% — This is the correct answer
  • (B)  50%
  • (C)  88%
  • (D)  25%

Reference: Report to the Nations 2016 Global Fraud Study, published by the Association of Certified Fraud Examiners.

FEBRUARY 2018  TRIVIA

Question: Which of the following industries had the highest number of fraud victim organizations in 2016?

  • (A)  Manufacturing
  • (B)  Insurance
  • (C)  Construction
  • (D)  Banking and Financial Services — This is the correct answer

Reference: Report to the Nations 2016 Global Fraud Study, published by the Association of Certified Fraud Examiners.

JANUARY 2018  TRIVIA
Question: In 2016, what percentage of fraud perpetrators around the globe were male?
  • (A) 10% 
  • (B) 30%
  • (C) 70% — This is the correct answer
  • (D) 90%
 .
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Reference: Report to the Nations 2016 Global Fraud Study, published by the Association of Certified Fraud Examiners.
DECEMBER 2017 TRIVIA
Question: Which region had the largest percentage of reported corruption cases in 2016??
  • (A) Southern Asia — This is the correct answer 
  • (B) United States
  • (C) Middle East and North Africa
  • (D) Latin America and the Caribbean

Reference: Report to the Nations 2016 Global Fraud Study, published by the Association of Certified Fraud Examiners.

NOVEMBER 2017 TRIVIA
Question: Which asset misappropriation scheme below had the highest number of cases in the United States in 2016?
  • (A) Corruption
  • (B) Expense Reimbursements
  • (C) Billing — This is the correct answer
  • (D) Check Tampering

Reference: Report to the Nations 2016 Global Fraud Study, published by the Association of Certified Fraud Examiners.

OCTOBER 2017 TRIVIA
Question: Per the 2016 ACFE report to the nations the total losses caused by fraud were approximately:
  • (A) $2 million
  • (B) $500,000
  • (C) $6 billion — This is the correct answer
  • (D) $70 million

Reference: Report to the Nations 2016 Global Fraud Study, published by the Association of Certified Fraud Examiners.