Quiz on White-collar Crimes and Corruption Chapter 5

Who introduced the term 'White-collar Crimes'?

• Sarah Thompson

• Michael Johnson

• Edwin Sutherland

• John Smith

Answer explanation

Edwin Sutherland introduced the term 'White-collar Crimes'.

What is the general meaning of White-collar Crimes?

• Crimes committed by teenagers

• Crimes involving violence

• Crimes related to political activism

• Crimes motivated by financial gain

Answer explanation

White-collar crimes are crimes motivated by financial gain, typically committed by individuals in professional or business settings rather than violent or teenage offenders.

What is the estimated global annual loss due to fraudulent activities according to ACFE in 2013?

• USD 10 trillion

• USD 5 billion

• USD 3.7 trillion

• USD 1 trillion

Answer explanation

The estimated global annual loss due to fraudulent activities according to ACFE in 2013 was USD 3.7 trillion, making that the correct choice.

Which company went bankrupt in 2001 due to fraudulent financial reporting?

• Enron

• Barings Bank

• PricewaterhouseCoopers

• Arthur Andersen

Answer explanation

Enron went bankrupt in 2001 due to fraudulent financial reporting.

Who is known as the legend of Ponzi Scheme?

• Pak Man Telo

• Aman Shah

• Nick Leeson

• Bernard Madoff

Answer explanation

Bernard Madoff is known as the legend of Ponzi Scheme.

What is the most common mode of operation in the MACAU Scam?

• Romance Scam

• Impersonating as police officers

• Kidnapping for ransom

• Lucky Draw

Answer explanation

The most common mode of operation in the MACAU Scam is through Lucky Draw, where scammers deceive victims into believing they have won a prize to extract money or personal information.

What is the primary motive behind committing fraud according to the KPMG report?

• To achieve budget targets

• Other motives

• Personal gain and greed

• To protect the organization

Answer explanation

The primary motive behind committing fraud according to the KPMG report is personal gain and greed.

What is the most common type of fraud according to the KPMG report?

• Cyber fraud

• Financial statement fraud

• Asset misappropriation

• Corruption

Answer explanation

The most common type of fraud according to the KPMG report is Asset misappropriation.

What is the main reason for fraud to occur within an organization according to the KPMG report?

• Excessive regulations

• Weak internal controls

• Lack of technology

• Lack of skilled employees

Answer explanation

According to the KPMG report, the main reason for fraud to occur within an organization is weak internal controls.

What is the common method used in phishing scams?

• Non-received issue fraud

• Spoofing

• Account takeover

• Fraudulent applications

Answer explanation

The common method used in phishing scams is spoofing, where attackers impersonate legitimate entities to deceive victims into providing sensitive information.