Corporate Fraud and Internal Control Workbook: A Framework for Prevention

Chapter Four

Frauds Against the Organization

EACH YEAR, EMPLOYEE AND VENDOR FRAUDS cost organizations billions of dollars. Many companies avoid the negative publicity and embarrassment that comes with publicized fraud cases. As a result, much of what is known about fraud derives from anecdotal experiences.

QUESTIONS: FILL IN THE BLANKS

Refer to Chapter 4 in Corporate Fraud and Internal Control: A Framework for Prevention.

1. Fake references can be ___________ difficult to detect since they tend to be to the person or organization seeking finance, as genuine references would be.

2. The most common form of loan fraud, and the most expensive, is mortgage fraud, with the victims primarily being ___________ .

3. ___________ is generally seen to be more problematic than other forms of mortgage loan origination fraud for financial institutions, as it typically involves multiple loans as well as schemes to gain illicit proceeds from property sales.

4. Fraud for property schemes normally involve minor misrepresentations by applicants regarding their ___________ , ___________ , or value of other outstanding debts.

5. ___________ occurs when borrowers state that they intend to live in the property whereas, in fact, it is intended to be acquired for investment purposes.

6. Use of a ___________ involves the borrower being given an independent loan by a second lender without the knowledge or ...