CFE – Financial Transactions and Fraud Schemes — Question 55

Which of the following is a FALSE statement regarding check fraud?

Answer options

• A. A check fraud operation can be started with a computer, scanner, and printer.
• B. The equipment required to commit check fraud is relatively inexpensive.
• C. Check fraud is considered very risk due to the high likelihood of prosecution.
• D. The penalties for committing check fraud tend to be relatively mild.

Correct answer: D

Explanation

The correct answer is D because penalties for check fraud can be severe, often involving hefty fines and imprisonment. In contrast, options A, B, and C accurately reflect the nature of check fraud, including the low cost of equipment and the high risk of prosecution.