Changed CFE-Investigation Exam Questions

The Fraud Examiners Manual notes that predictive modeling and data analysis allow fraud examiners to detect fraud by using historical data to forecast future trends and anomalies. This matches option B.

CFE methodology stresses that fraud examinations should be conducted with the assumption that the matter could end in litigation, which directly affects evidence-handling decisions. If litigation is reasonably anticipated, organizations often must preserve potentially relevant records through measures such as litigation holds and suspension of normal record-retention/destruction practices. Disposing of evidence while litigation is likely (or while a duty to preserve could exist) can create serious consequences, including sanctions, adverse inferences, monetary penalties, and other legal repercussions for spoliation or failure to preserve evidence. Because the central risk is future legal proceedings—civil, criminal, regulatory, or employment-related—the most important consideration when deciding whether evidence can be disposed of is whether additional litigation is likely or could reasonably arise. The physical form of evidence (A) affects preservation techniques, but it is not the key decision driver for disposal. Reporting summaries (C) do not replace original evidence. Whether evidence is direct or circumstantial (D) is not the deciding factor; both can be critical depending on the case. Thus, likelihood of future litigation is the most important factor.

Pretexting is defined as impersonating someone else or making false/misleading statements to obtain information. Many jurisdictions specifically prohibit pretexting against financial institutions, which includes pretending to be a customer to access their bank account information.

“The interviewer must not express disgust, outrage, or moral condemnation… the basic logic of obtaining confessions can be summed up as maximize sympathy and minimize the perception of moral wrongdoing”.

Sympathy creates an environment conducive to confession, while other options (third-party presence, emphasizing immorality, or pressuring with time) are explicitly discouraged.