Fraudsters in what type of fraud buy an item and submit the bill to the employer as if it represented a purchase on behalf of the company?

Question

Options

• AFraudster through unauthorized invoices
• BLoss of purchases through fraudster
• CPersonal purchases through false invoicing
• DAll of the above

• A
  14% (6)
• B
  10% (4)
• C
  74% (31)
• D
  2% (1)

Explanation

Personal purchases through false invoicing (C) describes a scheme where an employee buys something for personal use, then submits the receipt or invoice to their employer claiming it was a business expense - essentially stealing reimbursement money by misrepresenting the nature of the purchase.

Why the distractors are wrong:

• A (Unauthorized invoices) refers to fraudsters submitting invoices for goods or services never ordered or received - a vendor fraud scheme, not a personal purchase scheme.
• B (Loss of purchases through fraudster) is not a recognized fraud category; it's a vague, poorly constructed distractor designed to confuse.
• D (All of the above) is wrong because only C accurately describes the specific behavior in the question.

Memory tip: Think of the phrase "personal on the company dime" - the key elements are (1) a personal item and (2) a false claim it was for the company. The word "personal" in option C directly maps to this concept, making it the precise match.

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