CFE – Financial Transactions and Fraud Schemes — Question 62

Geoffrey, a homeowner, has decided to add a patio to the back of his house. Geoffrey hires a contractor who insists on receiving payment up front so that he can pay for the materials required to complete the construction. The following week, Geoffrey is surprised to learn that the contractor has not arrived and is not answering his phone calls. Geoffrey has MOST LIKELY been victimized by which of the following frauds?

Answer options

Correct answer: D

Explanation

The correct answer is D, as Geoffrey was asked to pay upfront for services that were not rendered, which is characteristic of an advance-fee scheme. The other options do not specifically involve a contractor taking payment for materials without providing the promised service.