CFE – Investigation — Question 90

Which of the following is NOT a common method that fraudsters use to hide their ill-gotten gains?

Answer options

• A. Prepaying a home mortgage
• B. Purchasing a life insurance policy
• C. Transferring assets into another person's name
• D. Purchasing a used vehicle

Correct answer: A

Explanation

Prepaying a home mortgage is generally a legitimate financial action and does not actively conceal illicit funds. In contrast, purchasing a life insurance policy, transferring assets into another person's name, and buying a used vehicle are all strategies that fraudsters might use to obscure the origins of illegally obtained money.