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Presented Below Is a List of Terms Relating to Fraud

Question 133

Matching

Presented below is a list of terms relating to fraud schemes, followed by definitions of those terms.
Match the appropriate term with each definition. Each answer will be used only once.

Premises:

Responses:

Sales skimming

Involves removing cash from the cash register and replacing it with bogus checks

Bid rigging frauds

Scheme that typically involves an employee pocketing cash but not recording its collection

Payroll fraud

The involvement of using chemicals to remove a check's payment details and then adding new details for the payee, date, or amount of payment

Fraudulent cost-plus billing

In situations where cash register receipts are not reconciled with sales receipts per each individual cash register, the employee is free to rob the cash register with impunity

Swapping checks for cash

A dishonest purchasing agent might purchase from a friend or relative even though to do so is not in the best interest of the company

Short shipments

A fraud scheme in which a cashier uses distraction or deception in order to pocket part of the change due to the customer

Shortchanging the customer

Vendors bill customers for the vendor's costs plus a fictitious markup

Check washing

A dishonest purchasing agent might accept secret payments or favors in exchange for favoring a particular vendor

Kickback frauds

Involves improper hiring, improper changes to employee personnel files and pay rates, and improper work-related reporting

Robbing the cash register

Vendors ship fewer than the ordered amount of goods but bill for the amount ordered