INV 1705 Quiz 5 RDS

What is a Registered Disbursement Scheme (RDS) in the context of fraud?

• A legitimate process for tracking company expenses

• A fraudulent scheme where employees make fake disbursements to themselves

• A government program for financial assistance

• A method for paying suppliers through electronic transfers

How do fraudsters typically commit Registered Disbursement Scheme (RDS) fraud?

• By submitting false reimbursement claims for personal expenses

• By recording all disbursements accurately in financial reports

• By ensuring all payments go through a verification process

• By using company funds strictly for business-related expenses

What is false refund fraud?

• A legitimate refund issued to a customer for a returned item

• A discount given to a loyal customer

• A fraudulent refund processed for a non-existent return

• A refund processed through a secure payment gateway

What is a fictitious refund in refund fraud?

• A refund given to a customer after proper verification

• A refund processed after the product is received in good condition

• A refund issued by a manager following company policy

• A refund issued for an item that was never purchased or returned

How do fraudsters commit false void fraud?

• By ensuring that voided sales are reviewed during reconciliation

• By voiding a sale and taking the cash while keeping the merchandise intact

• By requiring manager approval for all voided transactions

• By properly documenting voided transactions for audit purposes