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NYC Associate Fraud Investigator Exam Questions with
Correct Answers and explanations LATEST THIS YEAR -
JUST RELEASED
Summarized Exam Coverage
The NYC Associate Fraud Investigator exam tests: detecting and investigating fraud in benefits (SNAP,
Medicaid, housing), procurement, payroll, and timekeeping; NYC rules and conflict of interest laws;
investigative techniques (surveillance, interviews, data mining); evidence preservation; report writing;
and testifying at administrative hearings. Focus is on local statutes, Patterns of Fraud, and red flags.
250 Randomized MCQs – Answers & Rationales in Italics
1. A city employee claims 40 hours of overtime but surveillance shows them at a movie theater for 6 of
those hours. What is the best initial step?
A) Confront the employee immediately
B) Write a final report
C) Obtain time records and surveillance log for comparison
D) Ignore because it is a minor amount
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Answer: C
Comparing time records with surveillance logs creates objective evidence of potential payroll fraud
before any interview.
2. During a SNAP interview, an applicant says they have no job but their social media shows them
bragging about “under-the-table” construction work. This is an example of:
A) Identity theft
B) Failure to report income – fraud
C) Clerical error
D) Housing fraud
Answer: B
Intentional omission of income to qualify for benefits is fraud, not a mistake, and is a core SNAP
violation.
3. You discover a vendor invoice that was paid twice. The vendor denies refunding the duplicate. Which
document is most critical?
A) The employee’s vacation schedule
B) The cancelled checks and bank statements
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C) The vendor’s website
D) The office telephone log
Answer: B
Cancelled checks and bank statements prove the duplicate payment occurred and show which accounts
were debited.
4. A housing applicant lists no other income but bank statements reveal monthly $2,000 deposits from a
relative. This is best described as:
A) Gift – no need to report
B) Unreported income that may affect rent calculation
C) Loan – irrelevant
D) Salary from a ghost employer
Answer: B
Regular deposits from any source count toward household income for subsidized housing, and hiding
them is fraud.
5. During an interview, the subject suddenly becomes very friendly and offers to buy you coffee. As an
investigator, you should:
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A) Accept politely to build rapport
B) Decline and note the attempt to influence
C) Buy the coffee yourself and share it
D) End the interview immediately
Answer: B
Accepting even small gratuities violates ethics rules and can compromise objectivity; politely decline and
document.
6. You run an automated data match and find a city employee who also receives Medicaid under a
different last name. The most likely fraud is:
A) Residency fraud
B) Dual enrollment / failure to disclose spouse’s income
C) Pension fraud
D) Vendor kickback
Answer: B
Using a different surname often conceals a spouse’s income or employment, which would disqualify the
household from Medicaid.
NYC Associate Fraud Investigator Exam Questions with
Correct Answers and explanations LATEST THIS YEAR -
JUST RELEASED
Summarized Exam Coverage
The NYC Associate Fraud Investigator exam tests: detecting and investigating fraud in benefits (SNAP,
Medicaid, housing), procurement, payroll, and timekeeping; NYC rules and conflict of interest laws;
investigative techniques (surveillance, interviews, data mining); evidence preservation; report writing;
and testifying at administrative hearings. Focus is on local statutes, Patterns of Fraud, and red flags.
250 Randomized MCQs – Answers & Rationales in Italics
1. A city employee claims 40 hours of overtime but surveillance shows them at a movie theater for 6 of
those hours. What is the best initial step?
A) Confront the employee immediately
B) Write a final report
C) Obtain time records and surveillance log for comparison
D) Ignore because it is a minor amount
, Page 2 of 129
Answer: C
Comparing time records with surveillance logs creates objective evidence of potential payroll fraud
before any interview.
2. During a SNAP interview, an applicant says they have no job but their social media shows them
bragging about “under-the-table” construction work. This is an example of:
A) Identity theft
B) Failure to report income – fraud
C) Clerical error
D) Housing fraud
Answer: B
Intentional omission of income to qualify for benefits is fraud, not a mistake, and is a core SNAP
violation.
3. You discover a vendor invoice that was paid twice. The vendor denies refunding the duplicate. Which
document is most critical?
A) The employee’s vacation schedule
B) The cancelled checks and bank statements
, Page 3 of 129
C) The vendor’s website
D) The office telephone log
Answer: B
Cancelled checks and bank statements prove the duplicate payment occurred and show which accounts
were debited.
4. A housing applicant lists no other income but bank statements reveal monthly $2,000 deposits from a
relative. This is best described as:
A) Gift – no need to report
B) Unreported income that may affect rent calculation
C) Loan – irrelevant
D) Salary from a ghost employer
Answer: B
Regular deposits from any source count toward household income for subsidized housing, and hiding
them is fraud.
5. During an interview, the subject suddenly becomes very friendly and offers to buy you coffee. As an
investigator, you should:
, Page 4 of 129
A) Accept politely to build rapport
B) Decline and note the attempt to influence
C) Buy the coffee yourself and share it
D) End the interview immediately
Answer: B
Accepting even small gratuities violates ethics rules and can compromise objectivity; politely decline and
document.
6. You run an automated data match and find a city employee who also receives Medicaid under a
different last name. The most likely fraud is:
A) Residency fraud
B) Dual enrollment / failure to disclose spouse’s income
C) Pension fraud
D) Vendor kickback
Answer: B
Using a different surname often conceals a spouse’s income or employment, which would disqualify the
household from Medicaid.
