CFE – Fraud Prevention and Deterrence — Question 58
Which of the following is an example of organizational crime?
Answer options
- A. Management of several pharmaceutical companies engaging in a price fixing scheme
- B. A sales manager using a corporate credit card for personal expenses
- C. An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds
- D. An HR employee adding a ghost employee to the payroll and misappropriating the paychecks
Correct answer: D
Explanation
The correct answer is D because it involves an HR employee committing fraud by creating a ghost employee and stealing their paychecks, which is a direct act of organizational crime. Options A, B, and C, while unethical, do not specifically represent crimes that are perpetrated by individuals within the structure of an organization in the same direct manner.