CFCI- Certified Financial Crimes
Investigator FINAL EXAM STUDY GUIDE
2026/2027 ACCURATE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
1. ACFE Fraud Definition - ANSWER ✔ Any illegal acts characterized by
deceit, concealment or violation of trust. These acts are not dependent upon
the application of threat of violence or physical force. Frauds are perpetrated
by individuals and organizations to obtain money, property or services; to
avoid payment or loss of services; or to secure personal or business
advantage.
2. AICPA Fraud Definition - ANSWER ✔ A broad legal concept that is
distinguished from error depending on whether the action is intentional or
unintentional.
3. Two Main Categories of Fraud - ANSWER ✔ Theft and deception
4. Theft - ANSWER ✔ Money, services, information (ID fraud or espionage),
physical assets
5. Deception - ANSWER ✔ Cooking the books, lying to shareholders/board,
lying to employees, deceiving prospective partners, customers, clients,
service providers or authorities
6. Fraud myths - ANSWER ✔ 1. We have very little fraud here
, 2. Ethics and compliance has us covered
3. Fraud is an unavoidable cost of doing business
7. 2 Types of Fraudsters - ANSWER ✔ Internal and external
8. Types of External Fraudsters - ANSWER ✔ dishonest customers
identity thieves
check forgers
dishonest vendors
2 categories of external mortgage fraud - ANSWER ✔ 1. Fraud for profit
2. Fraud for property
9. Builder bailout schemes - ANSWER ✔ Builder offers large financial
incentives to a buyer and facilitates an inflated loan amount through
overstated sales price, inflated appraisal and hiding incentives given to
buyer.
10.Chunking - ANSWER ✔ Trusting investors are tricked into a mortgage on a
property that is overvalued and for which there is no rent income to cover
the payments.
11.Another scheme is to get multiple mortgages on the same collateral property
without each bank knowing of the others
12.Equity skimming - ANSWER ✔ Investors buy homes and collect rent until
they have recouped their investment. Then they stop making mortgage
payments and keep collecting rent until foreclosure.
,13.Overstated appraisals to sell property multiple times - ANSWER ✔ Property
is purchased, high appraisal is given, then home is sold for max profit. Can
be flipped multiple times with increasing appraisals.
14.Straw buyers for mortgage loans - ANSWER ✔ Alleged buyers won't live in
home (property will be flipped). Straw buyers are compensated or can be
victims.
15.Fraud for property schemes - ANSWER ✔ Loan applications with false
information (assets, income, credit etc)
16.Financial Institutions - ANSWER ✔ Banks and firms involved in managing
money and investments.
17.Economic Slump - ANSWER ✔ Prolonged period of economic decline and
high unemployment.
18.Investment Houses - ANSWER ✔ Firms that facilitate buying and selling of
securities.
19.Chase Bank Scandal - ANSWER ✔ Bank's CEO profited during the 1929
market crash.
20.Historical Context - ANSWER ✔ Understanding events through their
economic and social backdrop.
21.Fraudulent Practices - ANSWER ✔ Deceptive actions aimed at financial
gain at others' expense.
, 22.Post-War Economic Boom - ANSWER ✔ Rapid growth in economy
following World War I.
23.Savings and Loan (S&L) - ANSWER ✔ Financial institutions primarily
focused on mortgage lending.
24.Federal Home Loan Bank Act of 1932 - ANSWER ✔ Established the
FHLBB to regulate S&Ls.
25.Federal Home Loan Bank Board (FHLBB) - ANSWER ✔ Principal
regulatory agency for the S&L industry.
26.Federal Savings and Loan Insurance Corporation (FSLIC) - ANSWER ✔
Insured deposits in S&Ls since 1934.
27.Deposit Insurance - ANSWER ✔ Protects depositors by covering losses
from bank failures.
28.Underinsurance - ANSWER ✔ S&Ls lacked adequate coverage for risky
lending policies.
29.Short-term borrowing - ANSWER ✔ S&Ls borrowed money for short
durations.
30.Metasearch - ANSWER ✔ Gives results from variety of engines (like
Google, Yahoo! Search, Live Search, and Ask.com)
Investigator FINAL EXAM STUDY GUIDE
2026/2027 ACCURATE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
1. ACFE Fraud Definition - ANSWER ✔ Any illegal acts characterized by
deceit, concealment or violation of trust. These acts are not dependent upon
the application of threat of violence or physical force. Frauds are perpetrated
by individuals and organizations to obtain money, property or services; to
avoid payment or loss of services; or to secure personal or business
advantage.
2. AICPA Fraud Definition - ANSWER ✔ A broad legal concept that is
distinguished from error depending on whether the action is intentional or
unintentional.
3. Two Main Categories of Fraud - ANSWER ✔ Theft and deception
4. Theft - ANSWER ✔ Money, services, information (ID fraud or espionage),
physical assets
5. Deception - ANSWER ✔ Cooking the books, lying to shareholders/board,
lying to employees, deceiving prospective partners, customers, clients,
service providers or authorities
6. Fraud myths - ANSWER ✔ 1. We have very little fraud here
, 2. Ethics and compliance has us covered
3. Fraud is an unavoidable cost of doing business
7. 2 Types of Fraudsters - ANSWER ✔ Internal and external
8. Types of External Fraudsters - ANSWER ✔ dishonest customers
identity thieves
check forgers
dishonest vendors
2 categories of external mortgage fraud - ANSWER ✔ 1. Fraud for profit
2. Fraud for property
9. Builder bailout schemes - ANSWER ✔ Builder offers large financial
incentives to a buyer and facilitates an inflated loan amount through
overstated sales price, inflated appraisal and hiding incentives given to
buyer.
10.Chunking - ANSWER ✔ Trusting investors are tricked into a mortgage on a
property that is overvalued and for which there is no rent income to cover
the payments.
11.Another scheme is to get multiple mortgages on the same collateral property
without each bank knowing of the others
12.Equity skimming - ANSWER ✔ Investors buy homes and collect rent until
they have recouped their investment. Then they stop making mortgage
payments and keep collecting rent until foreclosure.
,13.Overstated appraisals to sell property multiple times - ANSWER ✔ Property
is purchased, high appraisal is given, then home is sold for max profit. Can
be flipped multiple times with increasing appraisals.
14.Straw buyers for mortgage loans - ANSWER ✔ Alleged buyers won't live in
home (property will be flipped). Straw buyers are compensated or can be
victims.
15.Fraud for property schemes - ANSWER ✔ Loan applications with false
information (assets, income, credit etc)
16.Financial Institutions - ANSWER ✔ Banks and firms involved in managing
money and investments.
17.Economic Slump - ANSWER ✔ Prolonged period of economic decline and
high unemployment.
18.Investment Houses - ANSWER ✔ Firms that facilitate buying and selling of
securities.
19.Chase Bank Scandal - ANSWER ✔ Bank's CEO profited during the 1929
market crash.
20.Historical Context - ANSWER ✔ Understanding events through their
economic and social backdrop.
21.Fraudulent Practices - ANSWER ✔ Deceptive actions aimed at financial
gain at others' expense.
, 22.Post-War Economic Boom - ANSWER ✔ Rapid growth in economy
following World War I.
23.Savings and Loan (S&L) - ANSWER ✔ Financial institutions primarily
focused on mortgage lending.
24.Federal Home Loan Bank Act of 1932 - ANSWER ✔ Established the
FHLBB to regulate S&Ls.
25.Federal Home Loan Bank Board (FHLBB) - ANSWER ✔ Principal
regulatory agency for the S&L industry.
26.Federal Savings and Loan Insurance Corporation (FSLIC) - ANSWER ✔
Insured deposits in S&Ls since 1934.
27.Deposit Insurance - ANSWER ✔ Protects depositors by covering losses
from bank failures.
28.Underinsurance - ANSWER ✔ S&Ls lacked adequate coverage for risky
lending policies.
29.Short-term borrowing - ANSWER ✔ S&Ls borrowed money for short
durations.
30.Metasearch - ANSWER ✔ Gives results from variety of engines (like
Google, Yahoo! Search, Live Search, and Ask.com)
