CFE – Financial Transactions and Fraud Schemes — Question 77

Which of the following is an example of a cash larceny scheme?

Answer options

• A. Paul sold insurance policies to individuals but never filed the policies with the carrier. He then stole the customers’ premium payments, which he was able to do since the carrier did not know the policies existed.
• B. Mark, a cashier, knew Joe's register access code. He logged in as Joe and processed customer transactions as usual. He then helped himself to $50 from the register at the end of his shift.
• C. Sarah returned a $250 wall mirror to a home goods store. Jenna, the salesclerk, rang up a $350 return and kept the remaining $100.
• D. Emily is an accounts receivable clerk. She pocketed Customer A’s monthly payment. When Customer B's payment arrived, she applied it to Customer A's account. When Customer C's payment arrived, she applied it to Customer B's account.

Correct answer: C

Explanation

Option C is correct because it involves a scheme where a salesclerk manipulates the return process to steal cash from the store. Options A, B, and D describe different types of fraud or theft but do not specifically illustrate cash larceny, which focuses on directly taking cash through manipulation of transactions.