ACCY 465 Forensic

1. The deceptive practices of securities fraud can include: a. False information b. Intentionally misleading information c. Price manipulation d. Erroneous recommendations e. All of the above

1. E

1. Identity theft occurs every ______ seconds.

2

2. What is the goal for dummy corporations? a. To get the investor to invest into the wrong company b. To artificially inflate the price of security, then sell once the target price is reached c. To short the security, then artificially drive the price down d. None of the above

2. A

3. Any deceptive practice that influences investor's decisions to buy or sell securities is what type of fraud? a. Mortgage fraud b. Cyber fraud c. Securities fraud d. Government and nonprofit organization frauds

3. C

4. What are the red flags for securities fraud? a. Unsolicited emails or phone calls b. It is too good to be true c. The promoter/seller claims to have a crystal ball d. All of the above

4. D

5. What is the goal for abusive short selling? a. To get the investor to invest into the wrong company b. To artificially inflate the price of security, then sell once the target price is reached c. To short the security, then artificially drive the price down d. None of the above

5. C

6. What is NOT an important reason to legislate insider trading? a. Full and fair disclosure b. Does not gain investor confidence c. Gets rid of unfair advantage d. Gains investor confidence

6. B

6) _______ is a fraudulent investment operation where the operator provides fabricated reports and generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading. a) Ponzi scheme b) Pyramid scheme c) Money laundering d) Securities Fraud

A

6. What is ID theft? a. A crime where personal information is stolen b. A crime where someone steals your car c. A crime where someone steals your money d. A crime where someone steals your child

A

2) What is a difference between a pyramid scheme and a ponzi scheme? a) Ponzi scheme members have an active role in recruiting. Pyramid schemes don't recruit other members. b) Pyramid scheme members know what they are getting involved in. Ponzi scheme members think the investments are legitimate. c) No one loses money in a pyramid scheme. Only a few people lose money in a Ponzi scheme. d) Both Ponzi schemes and pyramid schemes will eventually collapse.

B

2. What is the definition of money laundering? a) Hanging money on a clothes line b) Cleaning dirty money c) Making money pretty d) Making sure the money is still green

B

2. Which one is not an ID theft red-flag? a. Data breach b. Phone call from the IRS c. Tax return notification d. Medical complications

B

4) Which one of these are true about a pyramid scheme? a) Pyramid Schemes have a long life cycle. b) Pyramid Schemes have a hierarchical setup. c) Pyramid Schemes are legal in the U.S. and in most other countries. d) Pyramid Schemes allow everyone involved to make a profit.

B

4. How many times can the charges be brought up? a) For one count of money laundering only b) For every count of money laundering c) For however many counts the court feel necessary for d) None of the above

B

7. When there's something strange... in your bank statements... who you gonna call? a. GHOSTBUSTERS! b. Federal Trade Commission c. Securities and Exchange Commission d. FINCEN

B

1) Who is known as the father of the Ponzi Scheme? a) Lou Pearlman b) Bernard Madoff c) Charles Ponzi d) Bernie Ponzi

C

3) Which one of these are not red flags of a pyramid scheme? a) No genuine product or service is sold. b) The primary emphasis is on recruiting new participants. c) Your boss offers you a raise at the end of the year. d) A high rate of return on investment in a short period of time.

C

5. What is the first thing to do when responding to an ID theft? a. Invest in a new sports car b. Call mom c. Call bank to freeze accounts d. Cry hysterically

C

5. Which type of business is an easy target for money laundering? a) Non-profit Organization b) Charities c) None of the above d) All of the above

C

6. Which of the following statements is not true? a) Money laundering is a huge economic problem b) You can money launder from home in your spare time c) Money laundering does not affect everyday businesses d) Digital currency is the future of money laundering

C

1. which of the following is not a step in the money laundering process? a) Placement b) Layering c) Integration d) All are steps in the process e) All are not steps in the process

D

3. Which of the following does not involve an ATM? a. Shoulder surfing b. Credit/Debit card theft c. Skimming d. Man-in-the-middle attack

D

5) Which of the following is not a method to protect yourself against Ponzi Schemes a) Use common sense b) Choose wisely c) Demand detailed reports d) Blindly trusting smooth talking investors

D

3. Which one is not a character in money laundering according to the BAE system? a) The organizer b) The leader c) The source d) The shark

a

4. What is one way to prevent ID theft? a. Use a VPN b. Don't buy items online c. Never leave the house d. Don't EVER talk to strangers

a