Financial Transactions and Fraud Schemes

Vishing

(or voice phishing) schemes use telephone calls or voice messages to trick targets into revealing personal or business information.

Horizontal analysis 2. Vertical analysis

1. Horizontal analysis is a technique for analyzing the percentage change in individual financial statement line items from one accounting period to the next. The first period in the analysis is considered the base period, and the changes in the subsequent period are computed as a percentage of the base period. 2. Vertical analysis is a technique for analyzing the relationships among the items on an income statement, balance sheet, or statement of cash flows during a specific accounting period by expressing components as percentages of a specified base value within the statement being analyzed. Ratio analysis is a means of measuring the relationship between any two different financial statement amounts. The relationship and comparison are the keys to any of these types of financial analyses.

1. An overstated refund scheme 2. fictitious refund scheme 3. Skimming

1. One type of register disbursement scheme is the overstated refund. Rather than creating an entirely fictitious refund, a fraudster might overstate the value of a real customer's refund, pay the customer the actual amount owed for the returned merchandise, and then keep the excess portion of the return. 2. In a fictitious refund scheme, an employee processes a transaction as if a customer were returning merchandise, even though there is no actual return. Then the employee takes cash from the register in the amount of the false return. The customer might or might not be aware of the scheme taking place. 3.Skimming is the removal of cash from a victim entity prior to its entry in an accounting system.

1.Synthetic identity theft 2.traditional identity theft

1. Synthetic identity theft involves the use of entirely fabricated personal information or a combination of real and fabricated information to create a new identity. 2.In traditional identity theft, a fraudster steals an individual's personal information and pretends to be that individual. For example, a fraudster might use an individual's name, government identification number, and date of birth to impersonate the individual and gain access to the individual's bank account. This is called an account takeover. Another type of traditional identity theft is true name fraud, in which a fraudster uses an individual's personal information to open a new account in the individual's name. Unlike an account takeover, which involves an existing account, true name fraud involves a new account.

1.fictitious expense reimbursement scheme and example 2.overstated expense reimbursement scheme. 3.multiple reimbursement scheme 4.mischaracterized expense scheme

1.Fictitious Expense reimbursements are sometimes sought by employees for wholly fictitious items. Instead of overstating a real business expense or seeking reimbursement for a personal expense, an employee just invents a purchase that needs to be reimbursed. One way to generate a reimbursement for a fictitious expense is to create fraudulent support documents, such as false receipts. Using simple computer software, it is easy for employees to create realistic-looking counterfeit receipts at home. These counterfeits are often very sophisticated, even including the logos of the stores in which goods or services were allegedly purchased. 2.Instead of seeking reimbursement for personal expenses, some employees overstate the cost of actual business expenses. This is considered an overstated expense reimbursement scheme. 3.In a multiple reimbursement scheme, an employee submits several types of support for the same expense in order to get reimbursed multiple times. 4.In a mischaracterized expense scheme, an employee requests reimbursement for a personal expense, claiming that it is business related

1.Ransomware 2.Spyware 3. Trojan horse 4.Crimeware

1.Ransomware, as its name implies, is a form of malware that locks a user's operating system and restricts access to data files until a ransom is paid. To intimidate Internet users into compliance, ransomware often employs a convincing professional interface, commonly emblazoned with police insignia or an official government logo. Messages sometimes consist of threatening accusations that the user has been caught viewing illegal videos, downloading pirated media, or otherwise accessing forbidden Internet content, with the only remedy being to pay a fine. Other forms are far more direct and make no effort to conceal their obvious attempts at extortion. 2.Spyware is a type of software that collects and reports information about a computer user without the user's knowledge or consent. 3.A Trojan horse is a program or command procedure that gives the appearance of being useful but in fact contains hidden malicious code that causes damage. When the hidden code in a Trojan horse is activated, it performs some unwanted or harmful function. Often, viruses and worms attach themselves to other legitimate programs, becoming Trojan horses and spreading to other systems. 4.Crimeware is not a type of malware but rather a classification of malware denoted by its intent to facilitate criminal behavior. Crimeware can be described as malware designed to simplify or automate online criminal activities, such as programs to fraudulently obtain financial gain from the affected user or other third parties.

1.account takeover 2. true name fraud 3. Business identity theft 4.Criminal identity theft

1.Using an individual's stolen credit card or credit card number to purchase goods. Impersonating an individual to gain access to the individual's bank account 2. Using an individual's personal information to open a new credit card account 3.Business identity theft occurs when a fraudster impersonates a business to commit financial fraud. In addition to impersonating an existing business, fraudsters can use government business filings to reinstate a closed or dissolved business. They can also trick third parties by creating a new business with a name similar to an existing business. 4.Criminal identity theft occurs when fraudsters falsely identify themselves as other people to law enforcement while being arrested or investigated for a crime. The crime is then incorrectly attributed to the other person instead of the fraudster.

Brittany, a cash register teller, signed onto her register, rang a "no sale" transaction to open the drawer, and then removed a large sum of money. Which of the following schemes has taken place?

A cash larceny scheme The most straightforward cash larceny scheme is one in which the perpetrator just opens the register and removes currency. This might be done while a sale is being conducted to make the theft appear to be part of the transaction, or perhaps when no one is around to notice the perpetrator digging into the cash drawer. For instance, a teller could simply sign onto a register, ring a "no sale," and take currency from the drawer. This scheme is not a register disbursement scheme because register disbursement schemes involve a fraudulent transaction that justifies the removal of cash from the register, such as a false return or a voided sale. Brittany did not make any entry that would account for the missing money. In addition, the scheme is not a skimming scheme because the money in the register was already a part of the company's accounting system. There was no indication that the cash was part of an unrecorded or understated sale.

Which of the following health care frauds would be best described as a fictitious provider scheme?

A thief steals a health care provider's identification information and bills a government health care program under the name of a fake clinic. In a fictitious provider scheme, corrupt providers or other criminals fraudulently obtain and use another provider's identification information and steal or purchase lists of patients' identifying information. Thereafter, the perpetrator submits bills using the fictitious provider's information to the insurance provider or government health care program for medical services, although no services are performed.

Direct-action viruses

A virus that loads itself onto the target system's memory, infects other files, and then unloads itself

The type of fraud that targets groups of people who have some social connection, such as neighborhoods of racial minorities or immigrant groups, is known as:

Affinity fraud

1.Business email compromise (BEC) 2.Rock phishers

Business email compromise (BEC) is a form of spear phishing attack that directly targets executives or other high-ranking corporate employees who have the ability to make large payments. BEC schemes typically involve fraudulent emails that appear to be from the company's own chief executive officer (CEO) or from the head of a foreign supplier that the company has done business with for years. The emails often instruct the employee to perform a time-sensitive wire transfer to ensure that the supply chain is not disturbed. Increasingly, these emails are paired with an insistent phone call from someone posing as the email sender or as the sender's attorney. 2. Rock phishers use botnets to send massive amounts of phishing emails to huge volumes of Internet users. The emails contain a message from a financial institution, enticing users to click on a fraudulent URL.

1.Business identity theft 2.employment identity theft

Business identity theft occurs when a fraudster impersonates a business to commit financial fraud. 2.In an employment identity theft scheme, a fraudster impersonates another person to secure a job.

Which of the following methods might be used to conceal a sham loan transaction in which the loan officer receives part of the proceeds (kickback)?

Charging off the loan as a bad loan defines "sham" as an adjective meaning "false or bogus." A sham loan is a fake loan — one that never existed or was not legitimate. Fraudsters often use the "loan defense" as a way of saying their ill-gotten gains were lawful. It may also be a way for a fraudster to siphon funds from a business by characterizing a payment as a loan, when in fact it was really a dividend or reportable income paid to the person.This is called a sham loan scheme. In some instances, the loans are charged off as bad debts; in other instances, the fake loans are paid off with the proceeds of new fraudulent loans.

diagnostic-related groupings "DRG creep" occurs when

DRG creep occurs when medical staff members manipulate diagnostic and procedural codes to increase reimbursement amounts or other forms of funding. When it becomes a pattern and intent is established, it becomes fraud. For example, a hospital might repeatedly and incorrectly code angina (pain or discomfort in the chest due to some obstruction of the arteries) as a myocardial infarction (a more serious event, commonly known as a heart attack), and thus be reimbursed at a higher level.

In a _________, a bank buys, sells, and swaps its bad loans for the bad loans of another bank, creating new documentation in the process.

Daisy chain In a daisy chain, a bank buys, sells, and swaps its bad loans for the bad loans of another bank, creating new documentation in the process. Its purpose is to mask or hide bad loans by making them look like they are recent and good.

True/false The chances of being arrested and prosecuted for check fraud are high, and the penalties are relatively severe.

False Check fraud is considered a relatively low-risk crime; the chances of being arrested and prosecuted are low, and the penalties are relatively mild.

True/false Pass-through schemes are usually undertaken by employees who receive inventory on the victim company's behalf.

False Pass-through schemes are usually undertaken by employees in charge of purchasing on the victim company's behalf. Instead of buying merchandise directly from a vendor, the employee sets up a shell company and purchases the merchandise through that fictitious entity. They then resell the merchandise to their employer from the shell company at an inflated price, thereby making an unauthorized profit on the transaction.

True/false The primary purpose of physical access controls is to prevent unauthorized access to computer software.

False Physical access controls refer to the process by which users are allowed access to physical objects (e.g., buildings). In contrast, logical access controls are tools used to control access to computer information systems and their components.

true/false Physical access controls refer to the process by which users are allowed access to computer programs, systems, and networks.

False Physical access controls refer to the process by which users are allowed access to physical objects (e.g., buildings). In contrast, logical access controls are tools used to control access to computer information systems and their components.

True/false A Ponzi scheme can best be described as an illegal business structure that might offer merchandise or services but generates almost all of its revenues from the relentless recruitment of new members.

False ponzi scheme is investor takes the money and acts like its putting it in stock and its just taking money from new recurts. A Ponzi scheme is generally defined as an illegal business practice in which new investors' money is used to make payments to earlier investors. The investment opportunity is typically presented with the promise of uncommonly high returns. While the scam is presented as a legitimate investment, there is little or no actual commerce involved. In contrast, an illegal pyramid scheme is unique in that the more members that are recruited, the higher the investor is purported to rise in the ranks of the enterprise, and the more money the investor is supposed to make.

Karl finds a residential property with a non-resident owner. He then forges contractual property documents showing that the owner is transferring ownership of the property completely to Karl, such as would normally happen during a property sale. The property owner is unaware that Karl has created and filed the documents. Later, Karl takes the falsified documents to a lender and borrows money against the property. Which of the following best describes Karl's scheme?

Fraudulent sale Fraudulent sale scams are particularly harmful because they involve the fraudulent acquisition of real estate by filing a fraudulent deed or respective real estate document that makes it appear that the property legally belongs to the criminal. This scam does not happen at the origination of the loan, but rather it might occur without the homeowner's knowledge decades after the property was originally sold. The perpetrator identifies a property—typically belonging to an estate or non-resident owner—that is owned free and clear. They then create fictitious property transfer documents that purport to grant all rights and title on the property to the fraudster. The true owner's signature is forged on the documents, and the scammer files them in the jurisdiction's real property records. Once the ownership documents are filed, they apply for and execute a loan on the property (using a straw borrower). Often, the value is inflated. The perpetrator absconds with 100% of the loan proceeds.

Which of the following best describes the difference between a flipping scheme and a flopping scheme in the context of mortgage fraud?

In a flopping scheme, the value of the first transaction is deflated instead of inflating the second transaction. Property flipping is the process by which an investor purchases a home and then resells it at a higher price shortly thereafter. For example, an investor buys a house in need of work for $250,000 in July, renovates the kitchen and bathrooms, and landscapes the yard at a cost of $50,000. The investor then resells the house two months later (the time it takes to make the renovations) for a price that is reflective of the market for a house in that condition. This is a legitimate business transaction, and many individuals and groups make an honest living flipping properties. Property flipping is not intrinsically illegal or fraudulent, but it becomes so when a property is purchased and resold within a short period of time at an artificially or unjustly inflated value, often as the result of a fraudulent appraisal. In a flipping scheme, the property is sold twice in rapid succession at a significant increase in value (also known as an ABC transaction, where the property moves from party A to party B to party C very quickly). Property flopping is a variation on property flipping, but it generally involves a property subject to a short sale (meaning the owner sells the property at a lower value than the unpaid mortgage amount on the property). This variation typically is conducted by industry insiders or unscrupulous entrepreneurs rather than the homeowner. Property flopping involves a rapid transfer of property with an unjustified, significant change in value (like the ABC transaction in flipping schemes), but instead of inflating the value on the second transaction, the value on the first transaction is deflated. To prevent problematic short sale flopping, some lenders are starting to require all interested parties to sign an affidavit requiring disclosure of an immediate subsequent sale.

reverse social engineering schemes

In most social engineering scams, attackers approach the computer users, pretending that they need help; however, in reverse social engineering schemes, attackers get the users to make the contact. In these schemes, attackers disguise themselves as technical assistants or someone from whom the user needs help (a need often created beforehand by the attacker through sabotage). It is the reverse of social engineering—the user asks the attacker for help.

Which of the following is most indicative that the winning bid on an original construction project was not feasible?

Increasing trend in the number of change orders An increasing trend in the number of change orders or amounts on change orders might be an indication that construction changes have taken place that would alter the originally planned project to such an extent as to render the underwriting inappropriate. Alternatively, some projects—especially large projects—tend to have many change orders. It might be more abnormal in situations like these to have few change orders or none at all than to have many. For instance, a lack of change orders for a large project might suggest that progress is not actually being made. Ultimately, the key characteristic that the fraud examiner should look for in change orders is abnormality, which can come in many forms. Fraud examiners should discover what the normal trend for change orders is in terms of both quantity and content with the particular type of industry and project, and then they can look for deviations from those trends.

Which of the following describes the primary purpose of an automated clearing house (ACH) filter?

It enables account holders to provide their banks with a list of criteria to ensure only designated individuals get paid.

Which of the following is an information security goal that an e-commerce system should endeavor to meet for its users and asset holders?

Non-repudiation Non-repudiation is an information security goal that an e-commerce system should strive to provide its users and asset holders. It refers to a method used to guarantee that the parties involved in an e-commerce transaction cannot repudiate (deny) participation in that transaction. Non-repudiation is obtained through the use of digital signatures, confirmation services, and timestamps.

In a construction loan, developer overhead is a ripe area for abuse. The purpose of developer overhead is to provide:

Operating capital It is not uncommon in construction financing to have a budget line item for developer overhead. This is a ripe area for abuse. The purpose of developer overhead is to supply the developer with operating capital while the project is under construction. This overhead allocation should not include a profit percentage, as the developer realizes profit upon completion.

Jeremy is involved in an automobile accident but does not have insurance. To be reimbursed for the damages, he gets insurance, waits a short time, and then reports the vehicle as having been in an accident. He has committed an insurance scam known as _____________.

Past posting Past posting is a scheme in which a person is involved in an automobile accident but does not have insurance. After the accident, the person gets insurance, waits a short time, and then reports the vehicle as having been damaged in some manner, thus collecting for the earlier loss.

_________ is an attack in which users are fooled into entering sensitive data into a malicious website that imitates a legitimate website

Pharming Pharming is an attack in which users are fooled into entering sensitive data (such as a password or credit card number) into a malicious website that imitates a legitimate website. It is different from phishing in that the attacker in a pharming scheme does not have to rely on having users click on a link in an email or other message to direct them to the imitation website.

Define Phishing

Phishing is a type of social engineering scheme that involves impersonating a trusted individual or entity. Generally, phishers manipulate victims into providing sensitive information by falsely claiming to be from an actual business, bank, Internet service provider (ISP), or other entity with which the target does business. In these schemes, phishers typically use emails to direct Internet users to websites that look like legitimate e-commerce websites, such as online banks, retailers, or government agencies. Phishers control these imitation websites and use them to steal sensitive information, such as bank account details and passwords.

Which of the following is NOT an effective control to protect against skimming schemes?

Reconciling the sales records to the cash receipts Since skimming is an off-book fraud, routine account reconciliation is not likely to prevent or detect a skimming scheme. If such a scheme is taking place, reconciling the sales records to the amount of cash received will not indicate there is anything amiss; because the skimmed sale was never recorded, the books will remain in balance. Reconciling the physical inventory count with the perpetual inventory records, however, might reveal that there is shrinkage and therefore a skimming scheme. As with most fraud schemes, internal control procedures are a key to the prevention of skimming schemes. For instance, employees who have access to the cash register should not also be responsible for delivering the bank deposit. The accounts receivable clerk should be restricted from preparing the bank deposit, accessing the accounts receivable journal, and having access to collections from customers. An essential part of developing control procedures is management's communication to employees. Controlling whether an employee will not record a sale, understate a sale, or steal incoming payments is extremely difficult. Some physical controls can be put in place to prevent employee skimming, such as video cameras monitoring employees who handle cash and the implementation of a lockbox.

___________ involve paying individuals to undergo unnecessary medical procedures that are then billed to the patient's insurer or health care program.

Rent-a-patient schemes So-called rent-a-patient schemes involve paying individuals to undergo unnecessary medical procedures that are then billed to the patient's insurer or health care program. These schemes occur in countries using a third-party-payer system or single-payer system that allows private providers to bill health care programs.

Samantha operates a medical lab from a mobile trailer. Her business model is to go to an area, recruit patients for an array of unnecessary tests, and bill health care programs for those tests. She also typically bills for services never actually performed using the patient data collected. Soon after, she moves the trailer to a new location and starts the process again. Which of the following best describes Samantha's scheme?

Rolling lab A rolling lab is a mobile laboratory that solicits individuals to participate in health screening tests at no cost to the patient. After conducting the tests, however, the lab bills the individual's insurance provider or health care program. Also, the lab might bill additional claims for later service dates even though no more tests are conducted. The lab typically moves to another location prior to the patient receiving the test results to avoid detection.

what is SMiShing? What is Rock phishers?

SMiShing is a hybrid of phishing and short message service (SMS), also known as text messaging. These schemes use text messages or other short message systems to conduct phishing activities. That is, in SMiShing schemes, the attacker uses text messages or other SMSs to dupe an individual or business into providing sensitive data by falsely claiming to be from an actual business, bank, Internet service provider (ISP), or other entity with which the target does business. Rock phishers use botnets to send massive amounts of phishing emails to huge volumes of Internet users. The emails contain a message from a financial institution, enticing users to click on a fraudulent URL. There is some indication that rock phishers cycle through multiple email lists and attempt to reach the Internet users most likely to use the brands that they are targeting.

In a/an _____________ scheme, the company that initially conned a consumer contacts that consumer and offers to help retrieve the lost money. However, the investigation requires an upfront fee and the consumer is swindled again.

Scavenger The scavenger or revenge scheme involves the company that initially conned the consumer. Using a different company's name, the outfit contacts the consumer again and asks if they would like to help put the unethical company out of business and get their money back. Naturally, an upfront fee is required to finance the investigation.

Most shell company schemes involve the purchase of fictitious:

Services Most shell company schemes involve the purchase of services rather than goods. The primary reason for this is that services are not tangible. If an employee sets up a shell company to make fictitious sales of goods to their employer, these goods will obviously never arrive. By comparing its purchases to its inventory levels, the victim organization might detect the fraud. It is much more difficult for the victim organization to verify that the services were never rendered. For this reason, many employees involved in shell company schemes bill their employers for things like "consulting services."

The removal of cash from a victim organization before the cash is entered in the organization's accounting system is:

Skimming Skimming is the removal of cash from a victim entity prior to its entry in an accounting system. Employees who skim from their companies steal sales or receivables before they are recorded in the company books. Because of this aspect of their nature, skimming schemes are known as off-book frauds; they leave no direct audit trail.

__________ is the term used for including additional coverages in an insurance policy without the insured's knowledge

Sliding

Technical surveillance

Technical surveillance is the practice of covertly acquiring audio, visual, or other types of data from targets through the use of technical devices, procedures, and techniques. When corporate spies resort to the use of technical surveillance, it is usually to gather nondocumentary evidence or information that cannot be found through open sources.

The most common giveaway scheme, in which a postcard arrives in the mail telling the recipient they have already won a prize such as a luxurious vacation or cash, is known as:

The "1-in-5" The most common giveaway scheme is known as the 1-in-5. In this scheme, a consumer receives a letter or postcard in the mail informing that individual that they have already won a prize. The prizes usually include luxurious vacations, new cars, or cash. Unfortunately, the odds of winning any of the prizes are extremely low. Victims might receive items of minimal or no value or coupons redeemable only for the company's substandard merchandise.

How does positive pay help prevent check fraud?

The bank verifies checks presented for payment against a list of approved checks provided by the company. Positive pay allows a company and its bank to work together to detect fraudulent items presented for payment. The company provides the bank with a list of checks and amounts that are written each day. The bank verifies items presented for payment against the company's list and rejects items that are not on the list. Investigations are conducted as to the origin of the unlisted items.

What is the primary difference between a Ponzi scheme and a pyramid scheme?

The difference between a Ponzi scheme and an illegal pyramid lies in how the operation is promoted. Illegal pyramids are promoted as pyramids, whereas Ponzi schemes are promoted as investment opportunities. In an illegal pyramid, the pyramidal structure helps draw new players, each believing that they will rise through the ranks of the pyramid. A Ponzi scheme, on the other hand, masquerades as some type of investment.

When fabricating a counterfeit credit card, which of the following is the most difficult facet to reproduce?

The hologram The hologram is the most difficult aspect of a credit card to reproduce. True holograms use a lenticular refraction process; counterfeits are generally only reflected materials, usually foil with an image stamped on it. These decals are attached to the card's surface rather than fixed into the plastic, as is the case with legitimate cards. Some fraudulent holograms do not change colors—as legitimate ones do—when viewed from various angles.

Which of the following is the most accurate description of logical access?

The process by which users are allowed to use computer systems and networks

True/false Off-book sales of goods always cause shrinkage.

True Off-book sales of goods, otherwise known as skimming, will always leave an inventory shortage and a corresponding rise in the cost of goods sold. When a sale of goods is made, the physical inventory is reduced by the amount of merchandise sold. If a retailer sells a pair of shoes, for instance, it has one less pair of shoes in the stock room. However, if this sale is unrecorded, the shoes remain on the inventory records. Thus, there is one less pair of shoes on hand than the records indicate. Such a reduction in the physical inventory without a corresponding reduction in the perpetual inventory is known as shrinkage.

True/false Real estate scams are easily recognized, as there is almost always an element of time pressure or "now-or-never" pitch from the perpetrator.

True Real estate scams are easily recognized. There is almost always an element of time pressure, with the victims being convinced they are participating in a "once-in-a-lifetime, now-or-never" deal. Perpetrators mislead victims into thinking they will miss the opportunity to make a fortune if they do not act fast.

Michael, a medical provider, performs an appendectomy, a procedure that is supposed to be billed as one code. Instead, he intentionally submits two codes for the same procedure, one for an abdominal incision and one for removal of the appendix. Which of the following best describes Michael's scheme?

Unbundling Because health care procedures often have special reimbursement rates for a group of procedures typically performed together (e.g., blood test panels by clinical laboratories), some providers attempt to increase profits by billing separately for procedures that are actually part of a single procedure. This process is called unbundling or coding fragmentation. Simple unbundling occurs when a provider charges a comprehensive code, as well as one or more component codes.

A medical provider billed an insurance company for a name-brand drug, while providing the patient with a generic version of the drug. This inflated billing scheme is known as which of the following?

Upcoding Upcoding occurs when a provider bills for a higher level of service than actually rendered. One common form of upcoding involves generic substitution—filling a prescription with a less expensive drug, while billing for the more expensive form of the drug.

A credit card skimming scheme requires

a device, often referred to as a skimmer or a wedge, that scans and stores a large amount of credit card numbers. Credit card skimming is more frequent in businesses where an employee is able to remove the card from the customer's view to process the transaction before returning it to the customer. Skimming can also be performed via the attachment of covert devices to automated teller machines (ATMs), automated fuel dispensers, vending machines, or self-service checkout kiosks. These devices are occasionally paired with a tiny hidden camera meant to record the input of a user's personal identification number (PIN).

Bid specifications are

a list of elements, measurements, materials, characteristics, required functions, and other specific information detailing the goods and services that a procuring entity needs from a contractor.

A forged maker scheme is defined

as a check tampering scheme in which an employee misappropriates a check and fraudulently affixes the signature of an authorized maker thereon. Erica committed a forged maker scheme because she forged the signature of the chief financial officer (CFO), an authorized maker, on her employer's check. In a forged endorsement scheme, an employee intercepts a company check intended for a third party and converts the check by endorsing it with the third party's name. Stewart committed a forged endorsement scheme because he signed Johnson's name on the back of the check and cashed it himself. In an altered payee scheme, an employee intercepts a company check intended for a third party and alters the payee designation so that the employee or an accomplice can convert the check. The employee inserts their own name, the accomplice's name, or a fictitious entity's name on the check's payee line. In addition to altering the payee designation, the amount of the check can be altered by tacking on extra numbers if the person preparing the check is careless and leaves space for extra numbers in the amount section of the check. Jeff and Lindsay both committed altered payee schemes. Jeff altered the payee line by inserting his own name on the check intended for Lewis, and Lindsay altered the amount on the check that was intended for her.

Technical surveillance is the practice of

covertly acquiring audio, visual, or other types of data from targets through the use of technical devices, procedures, and techniques. When corporate spies resort to the use of technical surveillance, it is usually to gather nondocumentary evidence or information that cannot be found through open sources. Corporate spies might employ various forms of technological surveillance, such as aerial photography, bugging and wiretapping, video surveillance, photographic cameras, mobile phones, monitoring computer emanations, and computer system penetrations.

In a baiting scheme

fraudsters leave malware-infected USB flash drives, CD-ROMs, or similar items in places where people will find them, such as parking lots. The items often have a label designed to elicit curiosity or greed in the victims (e.g., "FREE PRIZE"). Alternatively, the item could be left in a workplace break room with a label that seems relevant (e.g., "Year-End Report"). When the item is inserted into the victim's computer, the computer or network is infected, giving the identity thief access to information.

In the presolicitation phase, what happens

he procuring entity identifies its needs, develops the bid specifications (what, how much, and how good), determines the method to use for acquiring the goods or services, and develops the criteria used to award the contract.

Non-repudiation

refers to a method used to guarantee that the parties involved in an e-commerce transaction cannot repudiate (deny) participation in that transaction. In e-commerce, non-repudiation is obtained through the use of digital signatures, confirmation services, and timestamps.