Question 1

There are 5 types of shoplifters.Which of the following is not one of those types?

Accepted Answer

B

Question 2

White collar crimes involve all of the following except

Accepted Answer

White collar crimes involve nonviolent offenses committed by individuals or businesses such as embezzlement, fraud, bribery, and money laundering. Armed robbery, on the other hand, is a violent crime that involves the use of force or threat of force to take property from another person.

Question 3

Which of the following is a staged automobile accident with fraudulent intent?

Accepted Answer

Swoop and squat is a staged automobile accident where one vehicle swoops in front of another and suddenly slams on the brakes, causing a rear-end collision. This is done with fraudulent intent to collect insurance money. Scooping, sudden impact, and bang-bang are not specific types of staged accidents.

Question 4

An employee who fraudulently claims she or he was injured on the job would be committing

Accepted Answer

Fraudulently claiming a workplace injury for the purpose of obtaining worker's compensation benefits is an example of worker's compensation fraud. It is not employer fraud because the employee is the one committing the fraudulent act. It is also not employee larceny because the employee is not stealing physical property.

Question 5

Which of the following is not one of the three most common ways identity thieves obtain personal information?

Accepted Answer

Although pick-pocketing is a common crime, it is not one of the three most common ways that identity thieves obtain personal information. The three most common ways are stolen wallets, friends/relatives with access to the information, and corrupt employees with access to the information.

Question 6

According to your textbook,what may be the fastest growing sector of credit card fraud?

Accepted Answer

According to the textbook, counterfeiting of credit cards may be the fastest growing sector of credit card fraud. This involves creating fake credit cards with stolen information and using them to make unauthorized purchases.

Question 7

Money laundering involves three distinct steps: layering,integration,and

Accepted Answer

The three distinct steps of money laundering are layering (creating layers of transactions to obscure the origin of the funds), placement (physically placing the funds into a financial system), and integration (bringing the illicit funds back into the legitimate economy). The options A, C, and D are not accurate descriptions of the third step of money laundering.

Question 8

Which of the following terms refer to the problem of significant losses to retailers caused by crews or rings of often-mobile professional shoplifters?

Accepted Answer

Organized retail theft (ORT) refers to the problem of significant losses to retailers caused by crews or rings of often-mobile professional shoplifters.

Question 9

The primary federal agency responsible for investigating counterfeiting is the

Accepted Answer

The Secret Service, a division of the Department of Homeland Security, is responsible for investigating counterfeiting crimes, specifically those related to United States currency and other government-issued securities. The FBI is responsible for investigating a wide range of federal crimes, but their focus is not solely on counterfeiting. The DEA is responsible for enforcing drug laws and the CIA is a foreign intelligence agency, neither of which are primarily responsible for investigating counterfeit crimes.

Question 10

There are approximately 70,000 charities.Unfortunately,a very small number are frauds and create problems for legitimate charities.Which of the following is not one of the problems related to bogus charities as cited in the textbook?

Accepted Answer

The correct answer is C because donating to a bogus charity, while potentially risky in other ways, does not inherently put the donor in violation of the law. The other options (A, B, and D) are legitimate problems caused by fraudulent charities.

Question 11

Scamming victims out of personal information on the Internet is accomplished by a technique known as

Accepted Answer

Scamming victims out of personal information on the Internet is commonly accomplished through phishing, wherein the attacker poses as a trustworthy entity and tricks unsuspecting victims into providing sensitive information.

Question 12

Why do criminals want to launder money?

Accepted Answer

Criminals want to launder money to avoid prosecution, increase their profits, and appear legitimate. By laundering money, they can conceal the source and ownership of illicit funds and use them for legal purposes without raising suspicion. This helps them evade law enforcement, earn more money, and legitimize their illegal activities.

Question 13

Making multiple deposits of cash,or buying multiple bank drafts,which are checks issued by one bank against funds deposited in the bank that authorize a second bank to make payment to the entity named in the draft is

Accepted Answer

Making multiple deposits of cash or buying multiple bank drafts to avoid reporting requirements is known as smurfing. This technique is often used by money launderers to avoid detection and to keep transactions under the radar of authorities. Shoulder smurfing is a similar technique where multiple individuals make small deposits to avoid reporting requirements. Check kiting is a type of check fraud in which funds are transferred between accounts to take advantage of the time delay in clearing checks. A black market peso exchange is a type of money laundering that involves trading goods or services for foreign currency, which is then used to pay off creditors or invest in other illegal activities.

Question 14

Insurance frauds can be hard or soft.Which of the below statements is/are correct in reference to insurance fraud?

Accepted Answer

Soft fraud is also known as opportunity fraud, and it involves normally honest people who tell "little white lies" to collect reimbursements to which they are not entitled. Billing for services that were never rendered is an example of hard fraud, which is a different type of insurance fraud.

Question 15

What scam begins with a potential victim getting an unsolicited fax,email,or letter that purports to be from a current or former Nigerian governmental official or a relative of such,and requests assistance in getting money into the United States?

Accepted Answer

The Nigerian 419 scheme and the Black Money/Wash Wash scheme both involve unsolicited contact from a supposed Nigerian official or relative requesting assistance in getting money into the United States.

Question 16

Once armed with enough stolen personal identification data,the process of identity theft is executed and follow-on crimes are committed.What term refers to the practice of the thief calling credit card companies,asking them to change the address "your" bill is mailed to and quickly running up charges on accounts?

Accepted Answer

Account takeover refers to the practice of a thief calling credit card companies and requesting a change of address for billing statements. They then quickly run up charges on the accounts before the victim realizes what has happened.

Question 17

A person who opens accounts at several banks,knowingly,issuing a check that overdraws their account at bank 1,and then depositing a check in that account from their bank 2 account to cover the first worthless check is a

Accepted Answer

This is a classic example of check kiting, where a person takes advantage of the time delay in check clearance between two banks to play with money that they do not have in their account. It is an illegal and fraudulent activity.

Question 18

What has been referred to as the "crime of the new millennium?"

Accepted Answer

Identity theft has been referred to as the "crime of the new millennium" due to its prevalence and impact on individuals and society as a whole. It involves stealing someone's personal information and using it for fraudulent purposes, such as opening credit card accounts, taking out loans, or filing false tax returns. This type of crime can cause significant financial and emotional harm to victims and can be difficult to investigate and prosecute.

Question 19

Which category of people receives as much as 70% of the total confidence game pitches?

Accepted Answer

Elderly people receive as much as 70% of the total confidence game pitches.

Question 20

Any manipulation or deception that affects the purchase or sale of a security and usually includes the misrepresentation or omission of significant information is

Accepted Answer

Securities fraud involves any manipulation or deception that affects the purchase or sale of a security and usually includes misrepresentation or omission of significant information. Integration refers to the combining of separate pieces of information to conceal illegal activity, while layering involves the creation of complex trades to conceal the origin of illicit funds. A confidence game refers to a scheme in which the perpetrator gains the trust of the victim in order to commit fraud or theft.

Quiz 15: Larceny Theft and White-Collar Crime