Chapter 09
1. When is searching through someone’s garbage considered as a legal activity ?
a.
When the trash is left unattended inside the suspect’s home.
b.
When the trash is in the possession of the suspect.
c.
When the trash has left the suspect’s home or sidewalk.
d.
Searching through a person’s trash is never considered as a legal activity.
c
c.
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2. Income from known sources subtracted from the total income gives a reasonable estimate of:
a.
Unknown funds
b.
Liabilities
c.
Living expenses
d.
Net worth
a
a.
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3. Which of the following is NOT one of the major credit reporting agency?
a.
Experian
b.
Equifax
c.
TransUnion
d.
ProQuest
d
a.
Incorrect. Experian is a major credit reporting agency.
b.
Incorrect. Equifax is a major credit reporting agency.
c.
Incorrect. TransUnion is a major credit reporting agency.
d.
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4. From the following, identify an item that does NOT go into current net worth calculations?
a.
Preliminary expenses
b.
Prior year’s net worth
c.
Funds from known sources
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d.
Assets
a
a.
b.
Incorrect. This is used in net worth calculations.
c.
Incorrect. This is used in net worth calculations.
d.
Incorrect. This is used in net worth calculations.
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5. Which one of the following information is NOT maintained by credit reporting agencies?
a.
Supplier or creditor information such as sales volume and credit policies.
b.
Account information such as payment schedules, items purchased, and buying habits.
c.
Marketing information such as customer breakdowns by age, sex, and income levels.
d.
Consumer information such as addresses, ages, family members, and income.
a
a.
b.
Incorrect. This information is maintained by credit reporting agencies.
c.
Incorrect. This information is maintained by credit reporting agencies.
d.
Incorrect. This information is maintained by credit reporting agencies.
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6. Which of the following does NOT constitute a federal source of information?
a.
County clerk
b.
CIA
c.
Secret service
d.
FBI
a
a.
Correct. This is a state agency.
b.
Incorrect. This is a federal agency.
c.
Incorrect. This is a federal agency
d.
Incorrect. This is a federal agency.
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7. Net Worth Increase + Living Expenses =
a.
Income
b.
Funds from known sources
c.
Liabilities
d.
Assets
a
a.
b.
Incorrect. Net Worth Increase + Living Expenses = Income
c.
Incorrect. Net Worth Increase + Living Expenses = Income
d.
Incorrect. Net Worth Increase + Living Expenses = Income
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8. Mandy calls a local newspaper and pretends to be a neighbor who is away for the winter. She obtains account history
and orders the newspaper for six months. Has Mandy committed a fraud? If yes, under which act?
a.
No, the newspaper has not yet been delivered or paid.
b.
Yes, she is in violation of the Gramm-Leach Bliley Act of 1999.
c.
No, as the neighbor has not served any written notice to keep the information private.
d.
Yes, she is in violation of Fair and Accurate Credit Transactions Act of 2003.
b
b.
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9. To find marital and voting record, one would need to look at the records maintained by:
a.
county sheriff and other officers
b.
Social Security Administration
c.
county clerk
d.
local courts
c
a.
Incorrect. This agency maintains record about criminal charges, indictment statements, etc.
b.
Incorrect. This office maintains information about individuals’ social security number.
c.
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10. Funds from unknown sources equals:
a.
Assets − liabilities.
b.
Net worth increase + living expenses.
c.
Income − funds from known sources.
d.
Net worth −prior year’s net worth.
c
a.
Incorrect. This equals net worth
b.
Incorrect. This equals total income
c.
d.
Incorrect. This equals net worth increase.
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11. Which of the following information is NOT contained in the Social Security numbers issued by the Social Security
Administration?
a.
Area
b.
Person’s serial number
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c.
Age
d.
Group
c
a.
b.
c.
d.
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12. The Gramm-Leach Bliley Act prohibits:
a.
telemarketers from selling information to corporations.
b.
the use of false pretenses to access the personal information of others.
c.
public from accessing the criminal database of FBI.
d.
customers to opt out of information sharing.
b
a.
Incorrect. The Gramm-Leach-Bliley Act protects against the use of false pretenses.
b.
c.
Incorrect. The Gramm-Leach-Bliley Act protects against the use of false pretenses.
d.
Incorrect. The Gramm-Leach-Bliley Act protects against the use of false pretenses.
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13. Identify the usual order of net worth calculations used to determine stolen funds.
a.
Find net worth, find the net worth increase, find income, find the funds from unknown sources
b.
Find net worth, find income, find the funds from known sources, find the net worth increase
c.
Find income, find net worth, find the net worth increase, find the funds from unknown sources
d.
Find net worth, find the net worth increase, find the funds from known sources, find income
a
a.
b.
c.
d.
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14. Which of the following will be useful in ascertaining whether a doctor is legitimate?
a.
Department of Business Regulation
b.
Secretary of State
c.
State Medical Registry
d.
County Clerk
a
a.
15. Which federal agency maintains information on individuals who may be a threat to national security?
a.
Department of Justice
b.
Bureau of Prisons
c.
Department of Defense
d.
Secret Service
c
c.
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16. Identify the principal investigative agency of the Department of Justice.
a.
CIA
b.
NCIC
c.
FBI
d.
Secret Service
c
a.
Incorrect. The FBI is the principal investigative agency of the Department of Justice.
b.
Incorrect. The FBI is the principal investigative agency of the Department of Justice.
c.
d.
Incorrect. The FBI is the principal investigative agency of the Department of Justice.
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17. Which of the following agencies is responsible for protecting the president of the United States and other federal
dignitaries?
a.
CIA
b.
NCIC
c.
FBI
d.
Secret Service
d
d.
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18. What is the main objective of the net worth method?
a.
To determine the income and expenditure of an individual.
b.
To determine the extent of the stolen funds.
c.
To determine the financial position of the organization.
d.
To determine the change in the net worth.
b
a.
b.
c.
d.
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19. Using the net worth method, calculate an individual’s income from unknown sources. The following information is
available:
Increase in net worth
$100,000
Known income
$80,000
Salary
$60,000
a.
$0
b.
$10,000
c.
$20,000
d.
$40,000
c
c.
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20. Which of the following is classified as a state source of information?
a.
Bureau of Alcohol, Tobacco, and Firearms
b.
County Clerk’s office
c.
Department of Motor Vehicles
d.
Permit Departments
c
a.
Incorrect. This is a federal source of information.
b.
Incorrect. This is a local source of information.
c.
d.
Incorrect. This is a local source of information.
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21. What of the following makes the net worth method ineffective in some situations?
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a.
It gives a conservative estimate of stolen funds which are not readily accepted as evidence by courts.
b.
It rarely facilitates obtaining confessions from the suspects.
c.
When people have income, they either purchase additional assets, pay off liabilities, or improve their lifestyle,
thus increasing living expenses.
d.
Embezzlers typically spend their money on food, jewelery, vacation, and other luxuries that are difficult to
track.
d
a.
b.
c.
d.
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22. Using the data given below, calculate the income from unknown sources for years 2 and 3 respectively.
Year 1
Year 2
Year 3
Total Assets
$252,000
$266,000
$309,000
Total Liabilities
244,000
134,000
64,000
Known Income
30,000
69,000
74,000
Total Living Expenses
17,500
10,800
8,800
a.
(i) -3,200; -26,200
b.
(i) 65,800; 47,800
c.
(i) 76,600; 56,600
d.
(i) 69,000; 74,000
b
a.
b.
c.
d.
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23. Which of the following is a primary reason for conducting conversion searches?
a.
To find out suspect’s feelings about the organization.
b.
To understand the suspect’s reaction to crisis.
c.
To check the extent of sudden changes in lifestyle.
d.
To gather evidence that can be used in interrogations to obtain a confession.
d
d.
24. Which of the following is a primary reason for conducting conversion searches?
a.
To determine the extent of embezzlement.
b.
To identify how perpetrators conceal frauds.
c.
To develop a vulnerability chart.
d.
To understand the suspect’s reaction to crisis.
a
a.
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25. Name the agency of the Department of Justice charged with enforcing laws against narcotics trafficking.
a.
NCIC
b.
Secret Service
c.
DEA
d.
SSA
c
c.
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26. The Department of Vital Statistics maintains:
a.
licensing information.
b.
military records.
c.
fraud related information.
d.
birth records.
d
a.
Incorrect. The Department of Vital Statistics maintains birth records.
b.
Incorrect. The Department of Vital Statistics maintains birth records.
c.
Incorrect. The Department of Vital Statistics maintains birth records.
d.
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27. Using the data below, calculate living expenses.
Assets
$100,000
Liabilities
37,500
Prior years’s net worth
32,500
Income
55,000
a.
$57,500
b.
$17,500
c.
$20,000
d.
$25,000
d
a.
b.
c.
d.
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28. What do you mean by opting out?
a.
Serving a written notice, denying the bank the right to sell personal information.
b.
Withdrawing from a fraud being perpetrated by a colleague.
c.
A bidder denying to pay the proceeds of the bid on becoming bankrupt
d.
Whistle-blowing by a person who was part of a fraud earlier..
a
a.
b.
c.
d.
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29. What do you understand by the term trashing?
a.
A broad search on the Internet to obtain valuable information.
b.
Looking through a suspect’s garbage for possible evidence.
c.
Destroying hard copies important documents, so as to leave no evidence.
d.
Gaining financial information through previous acquaintances.
b
a.
Incorrect. Trashing a suspect involves looking through a person’s trash for possible evidence.
b.
c.
Incorrect. Trashing a suspect involves looking through a person’s trash for possible evidence.
d.
Incorrect. Trashing a suspect involves looking through a person’s trash for possible evidence.
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30. Name the major database maintained by the FBI.
a.
CIA
b.
UCC filings
c.
DEA
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d.
NCIC
d
a.
Incorrect. This is one of the federal agency.
b.
Incorrect. This is maintained by the Secretary of State.
c.
Incorrect. This is one of the agency of the Department of Justice.
d.
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31. Name the government agency whose information is valuable in tracing assets, establishing conflicts of interest,
identifying dummy companies, and determining changes in financial status.
a.
Department of Business Regulation
b.
Permit Department
c.
Secretary of State
d.
County clerk
c
a.
b.
c.
d.
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32. Identify the state agency that maintains licensing information about various professionals.
a.
Department of Vital Statistics
b.
Department of Business Regulation
c.
Permit Department
d.
County clerk
b
a.
b.
c.
d.
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33. How are permit departments helpful in conversion investigation efforts?
a.
Identifying the nature and location of businesses, new leases, and recent construction.
b.
Obtaining information about chattel mortgages and loans to individuals or businesses on equipment.
c.
Obtaining license numbers used for identification in transactions.
d.
Identifying owned assets, indebtedness, mortgage holders, trustees or straw buyers.
a
a.
b.
c.
d.
34. Military records are not confidential and provide valuable information that can help you trace a person’s whereabouts
through changing addresses. Which government agency furnishes such information?
a.
Central Intelligence Agency
b.
Federal Bureau of Investigation
c.
Department of Defense
d.
Department of Justice
c
a.
b.
c.
d.
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Data Set 9-1
Year 1
Year 2
Year 3
Home
220000
220000
220000
Car
25000
25000
50000
Investments
40000
50000
65000
Bank account
3000
7000
10000
Total Assets
288000
302000
345000
Home loan
200000
150000
100000
Auto loan
20000
0
0
Student loan
60000
20000
0
Total Liabilities
280000
170000
100000
Salary
95000
105000
Investments
4000
5000
Inheritance
6000
0
Total Income
105000
110000
Home loan
13200
13200
Auto loan
9600
9600
Other living
20000
22000
Wedding
4000
0
Total Expenses
46800
44800
35. Refer Data Set 9-1. Calculate the net worth of the individual at the end of year 1.
a.
$3,000
b.
$8,000
c.
$0
d.
$288,000
b
a.
Incorrect. Net worth at the end of Year 1 = 288,000 – 280,000 = $8,000
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36. Refer Data Set 9-1. The income from unknown sources for years 2 and 3 respectively are:
a.
$255,200; $300,200
b.
$171,200; $307,200
c.
$73,800; $179,800
d.
$65,800; $47,800
d
d.
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37. Which Act governs the information maintained by credit-reporting agencies?
a.
the Sarbanes-Oxley Act of 2002
b.
the Gramm-Leach-Bliley Act of 1999
c.
the Fair and Accurate Credit Transactions Act of 2003
d.
the Fair Credit Reporting Act of 1971
d
a.
b.
c.
d.
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38. Which of the following is NOT a form of database access?
a.
Subscription-based fees apply before access is granted.
b.
There is a per-use fee charged.
c.
A set number of searches are free followed by a daily charge for use thereafter.
d.
Unlimited free access to search is granted.
a.
b.
c.
b.
c.
Incorrect. Net worth at the end of Year 1 = 288,000 – 280,000 = $8,000
d.
Incorrect. Net worth at the end of Year 1 = 288,000 – 280,000 = $8,000
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39. Which of the following is NOT a publicly available means of fine tuning an internet search?
a.
by entering specific phrases
b.
by placing a minus sign after unique terms
c.
by utilizing domestic restrictions
d.
by utilizing the regular Google search engine
b
a.
Incorrect; this narrows the search.
b.
Correct; the minus sign must be placed before the unique terms
c.
Incorrect; this narrows the search.
d.
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40. Which of the following is a limitation to the Net Worth Method?
a.
It only includes assets and liabilities that can be discovered.
b.
The resulting amounts presented in court are usually lower than the actual theft amount.
c.
The Net Worth Method only gives an estimate of Net Worth increases or decreases.
d.
When presented with the Net Worth amount(s), suspects sometimes confess.
a.
Correct; there may be additional information not discovered.
b.
Incorrect; this often leads to the amounts being readily accepted in court.
c.
Incorrect; they are estimates, but they indicate unexplained income.
d.
Incorrect; the suspect does sometimes confess when faced with the evidence.
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41. Which of the following statements is true?
a.
Many fraud acts committed in the United States utilize the mail system.
b.
The United States Postal Service is a governmental organization.
c.
The United States Postal Inspection Service only shares its information with law enforcement agencies.
d.
Postal inspectors are state-employed investigators.
a.
b.
c.
d.
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42. Which of the following is NOT public information on record with the Secretary of State through the Uniform
Commercial Code?
a.
the company articles of incorporation
b.
the current board of directors
c.
the corporation registered agent
d.
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Chapter 09
d.
the initial incorporators
b
Incorrect; this is information on record.
b.
Correct; only the initial board of directors is on record.
d.
Incorrect; this is information on record.
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