CFE Certified Fraud Examiner Digital Forensics and Technology Fraud 1 — Questions and Answers
Question 1: Which type of computer fraud involves an employee inserting unauthorized code that skims small amounts from many accounts into a single account?
- Trojan horse attack
- Salami technique
- Logic bomb
- Round-down scheme (Correct answer)
Correct answer: Round-down scheme
A round-down scheme (also called a salami attack) involves programming a system to round down fractions of cents from many transactions and accumulate those fractions in a single account.
Question 2: Which term describes malware that encrypts a victim's files and demands payment for the decryption key?
- Spyware
- Ransomware (Correct answer)
- Adware
- Rootkit
Correct answer: Ransomware
Ransomware is malicious software that encrypts the victim's data and demands a ransom, typically in cryptocurrency, in exchange for the decryption key.
Question 3: In a Business Email Compromise (BEC) scheme, the fraudster typically impersonates which individual to authorize fraudulent wire transfers?
- A new vendor seeking payment setup
- A senior executive such as the CEO or CFO (Correct answer)
- An IT support technician requesting credentials
- A government regulator demanding compliance fees
Correct answer: A senior executive such as the CEO or CFO
BEC schemes most commonly involve impersonating a senior executive (CEO or CFO) to pressure finance employees into authorizing fraudulent wire transfers.
Question 4: Which technique do fraudsters use to make an email appear to come from a legitimate source by altering the 'From' field?
- Phishing
- Email spoofing (Correct answer)
- Vishing
- Smishing
Correct answer: Email spoofing
Email spoofing involves forging the sender's address in the email header to make the message appear to originate from a trusted or legitimate source.
Question 5: Which type of fraud involves creating fictitious identities by combining real and fabricated personal information to obtain credit?
- Account takeover fraud
- Synthetic identity fraud (Correct answer)
- Card-not-present fraud
- Bust-out fraud
Correct answer: Synthetic identity fraud
Synthetic identity fraud uses a blend of real information (often a Social Security number) combined with fabricated details to create a new fraudulent identity.
Question 6: What is the primary purpose of a honeypot in a fraud detection context?
- To encrypt sensitive financial data
- To lure and detect unauthorized users or fraudsters accessing systems (Correct answer)
- To back up transaction records for audit purposes
- To authenticate employee credentials
Correct answer: To lure and detect unauthorized users or fraudsters accessing systems
A honeypot is a decoy system or data set designed to attract and identify unauthorized access attempts, helping organizations detect insider threats or external attackers.
CFE Certified Fraud Examiner Digital Forensics and Technology Fraud 1
Which type of computer fraud involves an employee inserting unauthorized code that skims small amounts from many accounts into a single account?