Question 1

Computer fraud can be analyzed using the traditional data processing model.According to this model,the simplest and most common fraud is __________ fraud.
A)input
B)processor
C)computer instructions
D)output

Accepted Answer

In the traditional data processing model, input is the first stage where data is entered into the system. Input fraud is the simplest and most common type of computer fraud, in which fraudulent data is intentionally entered into the system to obtain unauthorized access or to manipulate results. Therefore, the best choice is A) input fraud.

Question 2

What is the most prevalent opportunity within most companies to commit fraud?
A)the failure to have any internal controls
B)the failure to enforce the system of internal controls
C)the failure to have the correct controls
D)the failure to realize that fraud could occur

Accepted Answer

The failure to enforce the system of internal controls is the most prevalent opportunity within most companies to commit fraud. This is because even if a company has internal controls in place, if they are not enforced or monitored, employees have the opportunity to exploit weaknesses in the system and commit fraudulent activities.

Question 3

Many fraud cases go unreported and unprosecuted for several reasons.Why is this the case?
A)Companies are reluctant to report computer crimes because a highly visible computer fraud is a public relations nightmare.
B)Such crimes are difficult,costly,and time-consuming to investigate and prosecute.
C)Law enforcement and the courts are often too busy with violent crimes that little time is left for fraud cases.
D)all of the above

Accepted Answer

All three choices provided are valid reasons for why many fraud cases go unreported and unprosecuted. Companies may not want to tarnish their public image, investigations and prosecutions can be expensive and time-consuming, and law enforcement may prioritize more violent crimes.

Question 4

How can funds be stolen in payroll fraud?
A)by paying a fictitious or ghost employee
B)by increasing pay rates without permission
C)by keeping a real but terminated employee on the payroll
D)All of the above situations are possible.

Accepted Answer

All of the above situations are possible in payroll fraud. Fictitious or ghost employees can be created and paid, pay rates can be increased without authorization, and terminated employees can still receive a paycheck. It is important for companies to have strong internal controls and regular audits to detect and prevent payroll fraud.

Question 5

What is a denial of service attack?
A)A denial of service attack occurs when the perpetrator sends hundreds of messages from randomly generated false addresses,overloading an Internet service provider's e-mail server.
B)A denial of service attack occurs when an e-mail message is sent through a re-mailer,who removes the message headers making the message anonymous,then resends the message to selected addresses.
C)A denial of service attack occurs when a cracker enters a system through an idle modem,captures the PC attached to the modem,and then gains access to the network to which it is connected.
D)A denial of service attack occurs when the perpetrator e-mails the same message to everyone on one or more Usenet newsgroups LISTSERV lists.

Accepted Answer

A denial of service attack occurs when the perpetrator overloads or floods a network, system, or server with traffic or requests, making it unable to respond to legitimate requests or causing it to crash. Option A best describes this type of attack. Option B describes an anonymous remailer attack, option C describes a modem hijacking attack, and option D describes a spamming attack.

Question 6

The US Justice Department defines computer fraud as
A)any crime in which a computer is used.
B)an illegal act in which knowledge of computer technology is essential.
C)any act in which cash is stolen using a computer.
D)an illegal act in which a computer is an integral part of the crime.

Accepted Answer

The answer of The US Justice Department defines computer fraud...

Question 7

What is one common way to hide a theft?
A)by creating cash through the transfer of money between banks
B)by the conversion of stolen assets into cash
C)by stealing cash from customer A and then using customer B's balance to pay customer A's accounts receivable
D)by charging the stolen item to an expense account

Accepted Answer

The answer of What is one common way to hide...

Question 8

Computer fraud is often much more difficult to detect than other types of fraud because
A)perpetrators usually only steal very small amounts of money at a time,thus requiring a long period of time to have elapsed before they're discovered.
B)perpetrators can commit a fraud and leave little or no evidence.
C)most perpetrators invest their illegal income rather than spend it,thus concealing key evidence.
D)most computer criminals are older and are considered to be more cunning when committing such a fraud.

Accepted Answer

Perpetrators of computer fraud can easily cover their tracks and leave little or no evidence. They can also use sophisticated techniques to hide their activities and make it difficult for investigators to detect them. As a result, computer fraud is often much more difficult to detect than other types of fraud.

Question 9

Stealing a master list of customers and selling it to a competitor is an example of
A)data theft.
B)output theft.
C)disbursement fraud.
D)a trap door technique.

Accepted Answer

Stealing a master list of customers is an act of data theft, which involves the unauthorized access or use of confidential information. The thief gains access to sensitive data with the intention of using it for personal gain, such as selling it to a competitor. Output theft and disbursement fraud are not relevant in this scenario, as they refer to different types of theft that do not involve data. A trap door technique involves creating a hidden entry point to a system or software, which is not applicable to this situation.

Question 10

In a disbursement fraud the company
A)pays too much for ordered goods.
B)pays for goods never received.
C)laps cash payments at the bank.
D)Both A and B are correct.

Accepted Answer

In a disbursement fraud, the company may pay too much for ordered goods or pay for goods never received, making both A and B correct.

Question 11

Characteristics connected with fraud include pressures,opportunities,and rationalizations.Of these characteristics,which one often stems from a lack of internal controls within an organization?
A)pressures
B)opportunities
C)rationalizations
D)none of the above

Accepted Answer

Opportunities stem from a lack of internal controls within an organization. Without proper controls in place, there are more opportunities for individuals to commit fraud. Pressures and rationalizations may also contribute to fraud, but they are not directly related to a lack of internal controls.

Question 12

In a __________ scheme,customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.
A)kiting
B)laundering
C)bogus expense
D)lapping

Accepted Answer

This type of scheme is known as lapping, where payments received from one customer are used to cover up the theft of an earlier customer's payment. It is a type of fraudulent activity that occurs when an employee steals customer payments and, in order to conceal the theft, posts the payment received from a subsequent customer to the account of the first customer. Over time, the employee may repeat this process, lapping payments and creating a complex web of transactions that are difficult to detect.

Question 13

Characteristics connected with fraud include pressures,opportunities,and rationalizations.Of these characteristics,which one relates to excuses that perpetrators have allowing them to justify their illegal behavior?
A)pressures
B)opportunities
C)rationalizations
D)none of the above

Accepted Answer

Rationalizations refer to the excuses or justifications that perpetrators have to justify their illegal behavior. Pressures refer to the financial or other pressures that lead individuals to commit fraud, and opportunities refer to the situations or conditions that make it possible for fraud to occur. Therefore, the characteristic that relates to excuses is rationalizations.

Question 14

Why is computer fraud often more difficult to detect than other types of fraud?
A)Rarely is cash stolen in computer fraud.
B)The fraud may leave little or no evidence it ever happened.
C)Computers provide more opportunities for fraud.
D)Computer fraud perpetrators are just cleverer than other types of criminals.

Accepted Answer

Computer fraud can be difficult to detect because it can be done remotely and the perpetrator may take steps to cover their tracks, leaving little or no physical evidence behind. Additionally, since computer fraud often involves obtaining sensitive information or manipulating digital records, it may not be as immediately noticeable as other types of fraud that involve physical objects or transactions.

Question 15

One computer fraud technique is known as data diddling.What is it?
A)gaining unauthorized access to and use of computer systems,usually by means of a personal computer and a telecommunications network
B)unauthorized copying of company data such as computer files
C)unauthorized access to a system by the perpetrator pretending to be an authorized user
D)changing data before,during,or after it is entered into the system in order to delete,alter,or add key system data

Accepted Answer

Data diddling refers to changing the data before, during, or after it is entered into the system in order to delete, alter, or add key system data. This technique is often used by fraudsters to cover up their tracks or to manipulate the system for their benefit.

Question 16

Computer fraud has been categorized into several different classifications.The classification of computer fraud where the perpetrator causes a company to pay for ordered goods,or to pay for goods never ordered is called
A)disbursement fraud.
B)inventory fraud.
C)payroll fraud.
D)cash receipts fraud.

Accepted Answer

Disbursement fraud involves the perpetrator causing a company to pay for goods or services that were never ordered or received. This type of fraud could occur through the use of fake invoices, purchase orders, or even by manipulating electronic payment systems. Inventory fraud involves the perpetrator stealing or manipulating inventory records, while payroll fraud involves falsifying or inflating employee compensation. Cash receipts fraud involves theft of cash or checks received by a company.

Question 17

The simplest and most common way to commit a computer fraud is to
A)alter computer input.
B)alter computer output.
C)modify the processing.
D)corrupt the data base.

Accepted Answer

Altering computer input is the easiest and most common way to commit computer fraud as it involves manipulating the data or commands that are entered into the system, which can have significant consequences. Altering computer output, modifying processing, and corrupting the database are also forms of computer fraud but may require more technical skill or access to the system.

Question 18

Which situation below makes it easy for someone to commit a fraud?
A)the organization placing excessive trust in key employees
B)inadequate staffing within the organization
C)company policies within the organization are unclear
D)All of the above situations make it easy for someone to commit a fraud.

Accepted Answer

All of the above situations make it easy for someone to commit a fraud. Placing excessive trust in key employees can provide an opportunity for them to take advantage of the trust placed in them, inadequate staffing can lead to a lack of oversight and control, and unclear company policies can make it easier for someone to conceal fraudulent activities.

Question 19

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as
A)lapping.
B)misappropriation of assets.
C)kiting.
D)concealment.

Accepted Answer

This is known as kiting, where a fraudster takes advantage of the time it takes for funds to clear between two or more accounts by creating fake deposits and withdrawals to show a higher balance than what is actually available. This allows the fraudster to withdraw the excess money before the bank realizes the initial deposit was fraudulent.

Question 20

The unauthorized copying of company data is known as
A)Data leakage
B)Eavesdropping
C)Masquerading
D)Phishing

Accepted Answer

Data leakage refers to the unauthorized copying, transfer, or theft of company data. Eavesdropping refers to the interception of data in transit, masquerading refers to impersonating someone else to gain access, and phishing refers to tricking someone into giving up their login credentials or personal information.

Quiz 5: Computer Fraud and Security

Computer fraud can be analyzed using the traditional data processing model.According to this model,the simplest and most common fraud is __________ fraud.

What is the most prevalent opportunity within most companies to commit fraud?

Many fraud cases go unreported and unprosecuted for several reasons.Why is this the case?

How can funds be stolen in payroll fraud?

What is a denial of service attack?

The US Justice Department defines computer fraud as

What is one common way to hide a theft?

Computer fraud is often much more difficult to detect than other types of fraud because

Stealing a master list of customers and selling it to a competitor is an example of

In a disbursement fraud the company

Characteristics connected with fraud include pressures,opportunities,and rationalizations.Of these characteristics,which one often stems from a lack of internal controls within an organization?

In a __________ scheme,customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.

Characteristics connected with fraud include pressures,opportunities,and rationalizations.Of these characteristics,which one relates to excuses that perpetrators have allowing them to justify their illegal behavior?

Why is computer fraud often more difficult to detect than other types of fraud?

One computer fraud technique is known as data diddling.What is it?

Computer fraud has been categorized into several different classifications.The classification of computer fraud where the perpetrator causes a company to pay for ordered goods,or to pay for goods never ordered is called

The simplest and most common way to commit a computer fraud is to

Which situation below makes it easy for someone to commit a fraud?

One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks.This is known as

The unauthorized copying of company data is known as