CFE – Financial Transactions and Fraud Schemes — Question 30

Which of the following scenarios is an example of an electronic extortion scheme?

Answer options

• A. A vendor rewards a purchasing employee with tickets for a professional sports team’s game after the employee directs business to the vendor.
• B. An employee receives a payment for directing excess business to a vendor.
• C. A purchasing employee and vendor agree to bill the company for services never rendered.
• D. A politician threatens to shut down a business if it does not pay a bribe.

Correct answer: D

Explanation

Option D is the correct answer as it describes a clear case of extortion where a politician is using threats to coerce a business into paying a bribe. The other options involve unethical practices but do not involve threats or coercion, making them not examples of extortion.