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Understanding Fraudulent Practices Quiz

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Which of the following is NOT a common method used in phishing attacks?

Sending text messages with links to download software updates

Explanation

Text messages with links aren't common in phishing.

What is the term for the practice of sending emails claiming to be from reputable companies to induce individuals to reveal personal information, such as passwords and credit card numbers?

Phishing

Explanation

Fraudulent emails tricking individuals into divulging sensitive data.

What is the term for the unauthorized access, use, disclosure, or destruction of information?

Data breach

Explanation

Unauthorized access leading to information compromise.

What is the term for the act of an employee taking cash from a cash register and replacing it with funds from their pocket?

Skimming

Explanation

Employee stealing from cash transactions.

What is the term for the fraudulent practice of sending emails claiming to be from a trustworthy source to trick individuals into revealing sensitive information?

Phishing

Explanation

Deceptive emails used to extract confidential details.

Which of the following is NOT a common method of identity theft?

Data breaches

Explanation

Direct data breaches aren't common in identity theft.

Which of the following is an example of identity theft?

Stealing someone's personal information to open credit card accounts

Explanation

Using personal data to fraudulently access financial services.

What is the term used for a fraudulent scheme where returns are paid to early investors using the investments of later investors?

Ponzi scheme

Explanation

A scheme paying early investors with later investors' money.

What is the term used to describe a type of fraud where someone pretends to be a legitimate entity to obtain sensitive information?

Spoofing

Explanation

Impersonation to gain access to confidential data.

#10

Which of the following is NOT a red flag that might indicate fraudulent activity?

Frequent audits and reviews

Explanation

Regular audits aren't indicative of fraud.

#11

Which of the following is an example of internal fraud?

Embezzlement

Explanation

Internal theft or misappropriation of funds.

#12

Which of the following is NOT a common indicator of potential fraudulent activity?

Excessive documentation and record-keeping

Explanation

Extensive documentation isn't a typical sign of fraud.

#13

In a corporate setting, what is a common method of fraud involving financial statements?

Cooking the books

Explanation

Manipulating financial records for misleading reporting.

#14

Which of the following is a form of financial statement fraud that involves the deliberate overstatement or understatement of revenues, expenses, or assets?

Cooking the books

Explanation

Intentional misrepresentation of financial facts.

#15

What is the term for the illegal practice of manipulating financial markets, often through spreading false or misleading information?

Market manipulation

Explanation

False information used to manipulate market conditions.

#16

What is the term for the illegal practice of manipulating financial markets, often through the rapid buying and selling of securities to create artificial activity?

Wash trading

Explanation

False activity to give a misleading impression.

#17

What is the term for the practice of manipulating financial data to present a more favorable picture of a company's financial position?

Window dressing

Explanation

Adjusting data for a misleading presentation.

#18

What is the term for the practice of manipulating financial markets by spreading false or misleading information to drive down the price of a security?

Pump and dump

Explanation

False data to lower security prices for personal gain.

Understanding Fraudulent Practices Quiz

Which of the following is NOT a common method used in phishing attacks?

What is the term for the practice of sending emails claiming to be from reputable companies to induce individuals to reveal personal information, such as passwords and credit card numbers?

What is the term for the unauthorized access, use, disclosure, or destruction of information?

What is the term for the act of an employee taking cash from a cash register and replacing it with funds from their pocket?

What is the term for the fraudulent practice of sending emails claiming to be from a trustworthy source to trick individuals into revealing sensitive information?

Which of the following is NOT a common method of identity theft?

Which of the following is an example of identity theft?

What is the term used for a fraudulent scheme where returns are paid to early investors using the investments of later investors?

What is the term used to describe a type of fraud where someone pretends to be a legitimate entity to obtain sensitive information?

Which of the following is NOT a red flag that might indicate fraudulent activity?

Which of the following is an example of internal fraud?

Which of the following is NOT a common indicator of potential fraudulent activity?

In a corporate setting, what is a common method of fraud involving financial statements?

Which of the following is a form of financial statement fraud that involves the deliberate overstatement or understatement of revenues, expenses, or assets?

What is the term for the illegal practice of manipulating financial markets, often through spreading false or misleading information?

What is the term for the illegal practice of manipulating financial markets, often through the rapid buying and selling of securities to create artificial activity?

What is the term for the practice of manipulating financial data to present a more favorable picture of a company's financial position?

What is the term for the practice of manipulating financial markets by spreading false or misleading information to drive down the price of a security?

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