- | P a g e
CFCI EXAM NEWEST 2025 ACTUAL EXAM
COMPLETE 150 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+ |BRAND NEW!!
CFCI EXAM QUESTIONS FOR CFCI
Helps explain the ways in which many frauds are committed by employees, middle managers, and executives of financial services organizations. (pg34) - CORRECT ANSWER - Opportunity Element of the triangle
Personal Greed, was considered the 4th side of the diamond. (pg 36) - CORRECT ANSWER -What caused the Fraud Triangle to morph into the Fraud Diamond
Internal fraud where an employee can submit a fictitious loan to a loan officer of the same company. - CORRECT ANSWER - Loans to phantom borrowers Start of chpt 4
the fraudster will make loan payments from funds received from subsequently closed or older fraudulent loans in a form of loan lapping scheme. pg 36 - CORRECT ANSWER -Loan Lapping (aka accounts payable fraud) 1 / 4
- | P a g e
"A third-party"or "nominee" loan is a loan in the name of one party that is intended for use by another. In other words, a persons PII is used with permission to secure a loan for someone who would not qualify, thus circumventing the system. - CORRECT ANSWER-Nominee or straw borrowers
A bank insider is induced to approve a loan to a non-credit worthy borrower, where the borrowers agrees to give something of value to the banker to approve the loan. - CORRECT ANSWER-Kickback on Illegal loans
a dishonest loan officer or bank manager agrees to authorize loans to one or more crooked bank colleagues or to dishonest counterparts in other financial institutions made with the understanding that a comparable, reciprocal loan or favor would be made in return. (pg 39) - CORRECT ANSWER -Reciprocal loans
a form of loan fraud in which a large depositor or a deposit broker agrees to give a bank its business in exchange for a loan that it might otherwise not qualify for or that is used to perpetrate a real estate fraud. - CORRECT ANSWER -Linked financing
- / 4
- | P a g e
typically are made by committing the borrower's receivables, inventory, or other assets as collateral. Also referred to a "Floor- plan" lending as merchandise is used as collateral for the loan. - CORRECT ANSWER -Working Capital or Asset-based Loan Fraud
bank employees with authority to credit and debit these accounts would and to move funds held in suspense accounts the fraudster controls, such as a personal checking account. - CORRECT ANSWER-Suspense Account fraud
- Application
- Tax return/financial statement
- Appraisal
- Verification of deposit
- Verification of employment
- Escrow/closing documents
- Credit documents - CORRECT ANSWER -Types of mortgage
fraud
Soft indicators and hard indicators. - CORRECT ANSWER - Two key categories of indicators of potential or actual employee fraud.
- / 4
- | P a g e
Are intangible, behavioral signs displayed by dishonest employees or employees with an intention to commit fraud. - CORRECT ANSWER -Soft indicators
Are pieces of evidence that are tangible. Often they are signs represented by numerical oddities or by physical evidence. - CORRECT ANSWER -Hard indicators
refers to separating job functions in a way that no single employee is in a position with sufficient authority to perpetrate a fraud, either single-handedly or with a collusive vendor, customer, or ex-employee.The responsibility for record-keeping for an asset should be separate from the physical custody of that asset. - CORRECT ANSWER-Segregation of Duties (SoD)
refers to having specific levels of authority, indicating who is permitted to approve particular components of the lending process, performing postfunding review functions and other key credit-related activities. This - CORRECT ANSWER -delegation of authority
• While fraud was instrumental in bringing about the subprime mortgage crisis, it is important for
- / 4