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
- (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
- (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
- (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
- (A) 10%
- (B) 30%
- (C) 70% — This is the correct answer
- (D) 90%
DECEMBER 2017 TRIVIA
- (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
- (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
- (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.