Certified Fraud Examiner - Financial Transactions and Fraud Schemes

Here you have the best ACFE CFE - Financial Transactions and Fraud Schemes practice exam questions

You have 254 total questions across 51 pages (5 per page)
These questions were last updated on February 16, 2026
This site is not affiliated with or endorsed by ACFE.

Question 1 of 254

Which of the following is a red flag that might indicate the existence of a need recognition scheme?

The purchasing entity’s materials are being ordered at the optimal reorder point.

The purchasing entity has a large list of backup suppliers.

The purchasing entity has unusually high requirements for stock and inventory levels.

The purchasing entity has few surplus items written off as scrap.

Question 2 of 254

Which of the following is NOT a distinguishing feature of a Ponzi scheme?

Participants attempt to recruit as many new members as possible.

Previous investors are paid with money from new members.

Participants believe that they are making a legitimate investment.

Promoters of Ponzi schemes engage in little or no valid commerce or investments.

Question 3 of 254

Geoffrey, a homeowner, has decided to add a patio to the back of his house. Geoffrey hires a contractor who insists on receiving payment up front so that he can pay for the materials required to complete the construction. The following week, Geoffrey is surprised to learn that the contractor has not arrived and is not answering his phone calls. Geoffrey has MOST LIKELY been victimized by which of the following frauds?

Deposit scheme

Scavenger scheme

Block hustle scheme

Advance-fee scheme

Question 4 of 254

Neil, a Certified Fraud Examiner (CFE), discovers that a borrower used the same property as a security, or guarantee, to obtain multiple loans from different financial institutions before they were recorded on his credit report. Which type of loan fraud BEST describes the scheme Neil uncovered?

Single-family housing loan fraud

Linked financing

Double-pledging collateral

Reciprocal loan arrangements

Question 5 of 254

Which of the following is a common red flag of a bid tailoring scheme?

Changes in contract specifications from previous proposals are explained in detail.

The procuring entity rebids contracts because fewer than the minimum number of bids are received.

Numerous bidders respond to the procuring entity’s bid requests.

There are unusually broad specifications for the type of goods being procured.

About the ACFE CFE - Financial Transactions and Fraud Schemes Certification Exam

About the Exam

The ACFE CFE - Financial Transactions and Fraud Schemes (Certified Fraud Examiner - Financial Transactions and Fraud Schemes) validates your knowledge and skills. Passing demonstrates proficiency and can boost your career prospects in the field.

How to Prepare

Work through all 254 practice questions across 51 pages. Focus on understanding the reasoning behind each answer rather than memorizing responses to be ready for any variation on the real exam.

Why Practice Exams?

Practice exams help you familiarize yourself with the question format, manage your time, and reduce anxiety on the test day. Our CFE - Financial Transactions and Fraud Schemes questions are regularly updated to reflect the latest exam objectives.