CFE – Financial Transactions and Fraud Schemes — Question 59

Which of the following is an insurance fraud detection tool that uses computer-generated reports to compare payments going to the same location and identify funds fraudulently sent to brokers?

Answer options

• A. Payroll reports
• B. Address similarity reports
• C. Electronic confirmations
• D. Vendor master lists

Correct answer: C

Explanation

The correct answer is C, Electronic confirmations, as it specifically provides a means to generate reports that can reveal inconsistencies in payment distributions to certain locations. The other options, while related to financial tracking, do not focus on identifying fraudulent activity linked to brokers in the same manner.