CFE – Financial Transactions and Fraud Schemes — Question 46

Which of the following statements about skimming is INCORRECT?

Answer options

• A. Skimming schemes can involve the theft of either cash sales or accounts receivable payments.
• B. Skimming schemes are generally more difficult to detect than cash larceny schemes.
• C. Skimming schemes involve stolen customer payments that have not yet been recorded.
• D. Skimming schemes are considered on-book frauds because they leave an audit trail.

Correct answer: D

Explanation

The correct answer is D because skimming schemes are off-book frauds that do not leave an audit trail, making them difficult to trace. Options A, B, and C correctly describe aspects of skimming schemes that are true and align with how they operate.