Sources of Information *

Question 1

Which of the following is a limitation of conducting a public database search online?

A. Online public records searches are limited in the area they cover, often requiring fraud examiners to search multiple jurisdictions

B. Information from online databases must be checked for accuracy and currency

C. Online coverage of public records varies widely from state to state

D. All of the above

Answer 1

D. All of the above
The main limitations of online public database searches include:
• Online coverage of public records varies widely from state to state, and therefore, there are many degrees of accessibility to public records between jurisdictions.
• Online public records searches are limited in the area they cover. Therefore, when looking for information on a subject, fraud examiners often must search for public records in multiple jurisdictions.
• Often, online public records are brief abstracts of the original public record.
• The source of the information compiled in an online database must be reliable.
• Fraud examiners must check information from online databases to determine if it is accurate and current.
• The records or publications compiled in an electronic format might cover only a limited period.
• Online searches can be erratic in the information they return.

Question 2

Baker, a government fraud examiner, is attempting to obtain information about a fraud suspect from a local bank. The bank’s records are covered by which federal law?

A. Fair and Accurate Credit Transactions Act

B. Financial Institutions Records Act

C. Freedom of Information Act

D. Right to Financial Privacy Act

Answer 2

D. Right to Financial Privacy Act
The Right to Financial Privacy Act prohibits financial institutions from disclosing financial information about individual customers to governmental agencies without the customer’s consent, a court order, a subpoena, a search warrant, or other formal demand. There are, however, limited exceptions to this rule.

Question 3

To protect privacy interests, contractual audit clauses with business partners are generally found to be void and threats to terminate a business relationship over another party’s refusal to turn over nonpublic information are prohibited. T/F

Answer 3

False
There are several ways to obtain nonpublic information. An organization may demand that a supplier, vendor, or agent turn over relevant documents as a condition of continued business. Taking this action is legal, in appropriate circumstances. Of course, management and counsel should be consulted before such demands are made, particularly if the other party has a contractual relationship with the company.

An audit clause allows the parties to access another party’s books. Often, audit clauses are too narrow to provide useful information. However, if properly constructed, an audit clause can be a powerful method by which on-book information can be obtained.

Question 4

If a fraud examiner needs information on registration and disciplinary information regarding firms and individuals in the futures industry, he should contact the Financial Industry Regulatory Association (FINRA). T/F

Answer 4

False
The National Futures Association is an industry-wide, self-regulatory organization authorized by the Commodity Exchange Act; it operates under the supervision of the Commodity Futures Trading Commission (CFTC). The NFA oversees the commodities markets, and it is a one-stop information source for all types of registration and disciplinary information regarding firms and individuals in the futures industry. This information includes registration status and employment history; disciplinary actions filed by the NFA, the CFTC, and the commodity exchanges; and customer complaints filed under the CFTC’s Reparations Program.

Question 5

If a fraud examiner was gathering information about a fraud suspect, which of the following types of information would likely require access to nonpublic sources of information to obtain?

A. Where the subject currently resides

B. The subject’s habits and lifestyle

C. The subject’s home phone records

D. All of the above

Answer 5

C. The subject’s home phone records

Nonpublic records—financial or otherwise—might be needed to prove fraud or to provide leads in a fraud examination. Nonpublic records include information about a person or business considered to be private and confidential. But unlike public records, nonpublic records are not available to the public, and because fraud examiners do not have an absolute right to see these personal records, such information might be difficult or impossible to obtain.

Some of the most valuable types of personal records include:
• Banking records
• Tax returns and related documents
• Credit records of individuals
• Private phone records
• Credit card account records
• Personal health care records

Question 6

Bill wants to search the Internet for articles about check fraud using a search engine. Which of the following search strings will yield the best results?

A. intitle:check fraud

B. filetype:“check fraud”

C. site:check fraud

D. ~check fraud

Answer 6

A. intitle:check fraud

Users can employ advanced search operators (or Boolean operators) to gain more control over the search results. Search operators are symbols that help search engines better understand exactly what the user is looking for, and they improve a search and return relevant links faster.

The intitle:term search operator restricts results to those containing all the search terms specified in the title. So, entering [intitle: check fraud] in a search engine will return only documents that contain the words check and fraud in the title. Since Bill is searching specifically for articles on check fraud, this would be his best choice.

Placing quotation marks around a phrase will indicate to the search engine that it is to search only for pages that have the exact phrase. Thus, performing a search for “check fraud” will yield pages containing that exact phrase. In Bill’s case, this search would also yield good results.

The site:URL search operator will return pages in which the URL contains any specified keyword(s).

In some search engines, placing (~) before a word will return pages containing the keyword and words similar to the keyword.

In some search engines, the filetype: search operator will return items of a particular filetype that match the keyword.

Question 7

Which of the following is a type of information that can be obtained from the deep Web?

A. Web content indexed by standard search engines

B. Websites without any links pointing to them

C. An old version of a Web page that has since been updated

D. An archived version of a Web page that is no longer online

Answer 7

B. Websites without any links pointing to them

The deep Web (also known as the invisible Web) refers to Web content that is not indexed by standard search engines. There are a number of reasons why the deep Web exists. For instance, there are sites where Web crawlers (search engine robots or spiders) cannot enter. Web crawlers are scripts that create a copy of a visited Web page which are later indexed by a search engine to provide faster searches. These deep Web resources include websites without any links pointing to them, certain file formats that search engines cannot handle, sites that have been blocked from crawler access, password-protected sites, and information stored in databases. Also, search engines limit the depth of their crawl on a website. Moreover, Web crawlers cannot crawl as quickly as pages are added or updated.

Alternatively, the term Internet archives refers to archived versions of Web pages that have since been updated or are no longer available online. The most popular tool for searching the Internet archives is the Wayback Machine, located at www.archive.org. The Wayback Machine allows users to see archived versions of Web pages throughout time. Fraud examiners can use the Wayback Machine to find historical information, such as:
• A photo posted on a website that has been removed
• Content, views, writing, and opinions rescinded by an author
• A company’s old job ads, statements, affiliations, or product lines

Question 8

Which of the following laws governs the dissemination of an individual’s credit information to third parties by consumer reporting agencies?

A. The Federal Credit Control Act

B. The Fair Credit Reporting Act

C. The Credit Information Act

D. None of the above

Answer 8

B. The Fair Credit Reporting Act

One of the primary statutes limiting access to information is the federal Fair Credit Reporting Act (FCRA). This statute regulates the dissemination of consumer information to third parties by consumer reporting agencies. Historically, the FCRA only applied to consumer credit reports, but due to amendments in 1997, the FCRA now applies to the gathering of many types of information about an individual that is collected through third parties.

Question 9

Which of the following types of searches is best suited for locating people using online records?

A. Medical facility commitment records

B. Media database searches

C. Credit bureau header searches

D. On-site court records searches

Answer 9

C. Credit bureau header searches

Fraud examiners can use credit header data to locate individuals. A credit header is the information in a credit report that gives basic information about the person to whom the credit report applies, and it includes identifying information such as name, name variations, current and former addresses, telephone number, date of birth, and Social Security number.

Nearly all individuals have been involved in some credit activity, either under their true names or an assumed (“also known as”) name, and if there are no credit records for an individual, it might be because he is very young or very old.

The credit bureau headers offer two search mechanisms. First, the fraud examiner can discover a current address, an address history, and Social Security number(s) associated with the target by using a past address up to seven years old. Second, once the fraud examiner has the subject’s Social Security number, he can search the credit bureau headers for matches because the Social Security number is a national identity number. Although Social Security numbers are protected from disclosure, they sometimes end up disclosed on public records.

Question 10

Morris, a CFE, is investigating Crump, who is active on Facebook. Morris wants to search and extract information from Crump’s Facebook page. Which of the following is the most accurate statement about the privacy of information shared through Crump’s Facebook page?

A. It is illegal for Morris to search for information that is posted and made available to the public without providing notice to Crump beforehand.

B. To access any information posted on Crump’s Facebook page, Morris must obtain a subpoena or other legal order.

C. Morris could be liable for violating Crump’s privacy rights if he hacks or breaks into areas of the social networking site Crump has designated as private.

D. The Privacy of Social Networks Act is a federal law that makes it illegal for Morris to seek the login credentials from Crump’s Facebook account.

Answer 10

C. Morris could be liable for violating Crump’s privacy rights if he hacks or breaks into areas of the social networking site Crump has designated as private.

Social media sites might contain valuable information. Fraud examiners are free to search and extract information from a subject’s page if it is open to the public, but there are limitations to the information fraud examiners can access on a social networking site due to privacy settings and anonymity.

Many users set their privacy settings in a way that prevents anyone besides their friends from seeing their profile information, and this creates several issues of legal access and privacy rights. Accessing information set to private could result in claims under state privacy laws, the Electronic Communications Privacy Act, or the Stored Communications Act. Thus, accessing information on social media sites that is restricted by privacy settings could result in liability for fraud examiners due to violation of users’ privacy rights.

Question 11

Which of the following best describes the primary purpose of the Right to Financial Privacy Act?

A. To prohibit financial institutions from disclosing financial information about individual customers to governmental agencies without consent or a judicial order

B. To make it a crime for financial institutions to release customers’ financial information to private parties without permission

C. To protect consumers against individuals who attempt to obtain confidential financial information through pretexting

D. To establish which personal financial records are available to the public and which ones must be obtained through a subpoena, search warrant, or court order

Answer 11

A. To prohibit financial institutions from disclosing financial information about individual customers to governmental agencies without consent or a judicial order

The Right to Financial Privacy Act prohibits financial institutions from disclosing financial information about individual customers to governmental agencies without the customers’ consent, a court order, a subpoena, a search warrant, or other formal demand. There are, however, limited exceptions to this rule.

Although the Act applies only to demands by governmental agencies, most banks and other financial institutions also will not release such information to private parties absent legal process, such as a subpoena issued in a civil lawsuit. The Act does not, however, make it a crime for them to do so.

Question 12

Which of the following types of records is/are available from local governments?

A. Utility company records

B. Voter registration records

C. Health and fire department records

D. All of the above

Answer 12

D. All of the above

The following items are basic types of public records that can be accessed at the local level of government:
• Building inspector records
• Building permit records
• Health and fire department records
• Death records
• County coroner’s register
• Voter registration records
• County fire marshal records
• Utility company records
• Marriage records

Question 13

Which of the following is a common use of public records in fraud examinations?

A. Tracing and recovering assets

B. Accessing an individual’s income tax filings

C. Obtaining a person’s credit score

D. All of the above

Answer 13

A. Tracing and recovering assets

Public records are documents that a governmental agency is required to keep by law or that are necessary to discharge the duties imposed by law. Public records, which can be accessed by the public and are thus available to anyone who wishes to use them, can be helpful to fraud examiners for a number of reasons. They can supply invaluable background information on employees, suspects, and witnesses. They can also be used to corroborate or refute witness statements, help investigators track the flow of stolen cash or other assets, and aid efforts to recover losses.

Individual tax records and consumer credit records are typically nonpublic information.

Question 14

Symbols and words—such as the plus sign, the minus sign, and the words “and” and “not”—that help search engines better understand exactly what the user is looking for are known as which of the following?

A. Boolean operators

B. Expansion numerals

C. Limiting factors

D. Search fields

Answer 14

A. Boolean operators

Boolean operators (or search operators) are symbols that help search engines better understand exactly what the user is looking for, and they improve a search and return relevant links faster. Thus, users can employ search operators to conduct more effective searches.

Question 15

A fraud examiner can always request a business’s bank records even if the business is not legally obligated to comply. T/F

Answer 15

True
The simplest way to obtain relevant documents is to request them. This usually works for fraud examiners representing large organizations that are important customers to the party with the information. Vendors and other customers of the company conducting the investigation might cooperate voluntarily if they have nothing to hide (or think that incriminating evidence cannot be found) and are anxious to maintain good relations with the company. A subject can consent to produce the records or execute a written consent for the fraud examiner to obtain such records from banks, credit agencies, or the IRS.

If the business does not voluntarily provide the records, fraud examiners may pursue them through subpoenas and other legal processes.

Question 16

A Uniform Commercial Code (UCC) filings search can help identify:

A. A list of companies that an individual is an officer or registered agent of

B. Personal property that an individual or business has financed

C. Real estate ownership information

D. All of the above

Answer 16

B. Personal property that an individual or business has financed

A search of Uniform Commercial Code (UCC) filings can help fraud examiners identify personal property that an individual or business has financed. These filings identify:
• Name of the debtor or joint debtors
• Current address of the debtors
• Name of the financial lender
• Type of collateral pledged as security
• Date of filing and continuations

Question 17

Which of the following statements best describes the function of metasearch engines such as Zoo, Dogpile, and Mamma?

A. Metasearch engines narrow searches to only those search engines that achieve the best results

B. Metasearch engines send user requests to several other search engines and aggregate the results for display

C. Metasearch engines contain links to websites that are sorted into categories

D. None of the above

Answer 17

B. Metasearch engines send user requests to several other search engines and aggregate the results for display

Metasearch engines send user requests to several other search engines and aggregate the results for display.

Question 18

Which of the following statements about bankruptcy court records is CORRECT?

A. The documents filed with a bankruptcy court are not open, public records

B. Bankruptcy documents are usually located in the state bankruptcy court for the jurisdiction where the debtor resided

C. A bankruptcy file typically contains the bankruptcy petition

D. All of the above

Answer 18

C. A bankruptcy file typically contains the bankruptcy petition

Bankruptcy proceedings are conducted in federal bankruptcy courts. In these courts, all documents filed with the court are public record and can be examined by anyone without charge. These on-site federal court records might include the case number, debtor’s name(s), Social Security number, address, filing date, chapter designation, and closure date. The search is available for all federal jurisdictions, usually covering a seven-year span that starts from the present and moves backward.

Bankruptcy documents are usually located in the federal bankruptcy court for the district where the debtor resided or had his principal place of business.

A bankruptcy file typically contains a number of files, including the bankruptcy petition.

Question 19

Bianca, a fraud examiner for the Levine Corporation, suspects that an employee of another company has committed a fraud scheme against Levine Corporation. Although Bianca has not obtained the suspect individual’s consent, she may access his credit report based on an exception to the Fair Credit Reporting Act. T/F

Answer 19

False

The Fair Credit Reporting Act (FCRA) generally requires a party to obtain the consent of an individual before accessing that person’s consumer or credit report. However, there are some exceptions to this rule. The Fair Credit Reporting Act (FCRA) governs, among other things, the circumstances under which employers may request consumer credit reports and consumer investigative reports on prospective or active employees. The Fair and Accurate Credit Transactions Act of 2003 amended the FCRA to exempt certain reports involving employee misconduct investigations. As a result of these amendments, an employer who uses a third party to conduct a workplace investigation no longer has to obtain the prior consent of an employee if the investigation involves suspected misconduct, violation of laws or regulations, or violation of any preexisting policy of the employer.

To qualify for this exception, the report from the third party must not be communicated to anyone other than the employer, an agent of the employer, or the government. It is also important to note that this exception is for internal investigations, and it will not justify access to an external party’s credit report without consent simply because that party is being investigated for fraud.

In this case, Bianca may not access the suspect’s credit report because the individual works for a separate company.

Question 20

Gamma, a Certified Fraud Examiner, is attempting to locate the birthplace of Theta, a fraud suspect. Where is Gamma most likely to find such a record, if it exists?

A. State’s driver’s license bureau

B. County recorder

C. State’s bureau of vital statistics

D. County tax assessor

Answer 20

C. State’s bureau of vital statistics

A state’s bureau of vital statistics, where birth certificates generally are filed, is an excellent source of information. Birth certificates can provide a child’s name, sex, date of birth, and place of birth, as well as the names of the attending physician, midwife, and/or other assistants; the parents’ names, ages, addresses, races, places of birth, and occupations; the mother’s maiden name; and the number of siblings. (In some states, birth certificates might be found at the city or county level.)

Question 21

Where permitted by law, searches of all of the following sources of information can be useful in developing background information for pre-employment purposes EXCEPT:

A. Criminal court records searches

B. Credit header searches

C. Income tax records

D. Bankruptcy records searches

Answer 21

C. Income tax records

Some of the searches useful in developing background information for employment purposes are listed below (where permitted by law):
• Credit header searches are useful in confirming address and Social Security number information.
• State court records can be searched to determine if candidates are or have been involved in civil actions.
• State and federal criminal court records and statewide criminal convictions may be used to uncover past criminal problems.
• Fraud examiners can search tax court liens to determine if candidates have been sued by tax authorities.
• Aircraft mechanics, airmen, medical licenses, and other licenses are available to ensure that basic job requirements are met in the appropriate circumstance.
• Consumer credit reports may be obtained for employee selection, retention, and promotion.
• Public filings such as bankruptcy filings, tax liens, and judgments may be obtained to identify adverse financial matters that can serve as potential motivators for fraud, defamation, and embezzlement.
• Where a prospective or current employee drives a personally owned vehicle or an employer-owned vehicle, such activity might expose the employer to liability for damages; therefore, DMV driving records must be checked.
• A candidate’s prior education and employment can be verified by conducting education and employment verification searches.
• Although workers’ compensation searches might return the subject’s name, Social Security number, date of birth, employer’s name, date and type of accident, and nature and extent of inquiry, the Americans with Disabilities Act might limit usage of the search results.

Income tax records are not public records and cannot be accessed for pre-employment purposes.

Question 22

Which of the following situations would the Privacy Act of 1974 regulate?

A. A financial institution gathering credit data on consumers and businesses

B. A consumer reporting agency selling information to a background researcher

C. A private individual collecting and maintaining information about other individuals

D. A federal agency distributing the medical and employment history of various individuals

Answer 22

D. A federal agency distributing the medical and employment history of various individuals

The Privacy Act of 1974 establishes a code of information practices that regulates the collection, maintenance, consumption, and distribution of personally identifiable information that is maintained by federal agencies. It restricts information about individuals, both employees and nonemployees, and it applies to governmental agencies and government contractors running a system of records on behalf of the government. The Privacy Act prohibits an agency from disclosing such information without the written consent of the subject individual.

Under the Act, an agency may maintain records about a person containing information that is relevant and necessary to accomplish a purpose of the agency. This information may include a person’s education, finances, medical history, criminal history, employment history, and identifying information (fingerprint, voiceprint, or photograph).

Question 23

Gamma, a Certified Fraud Examiner, is conducting an investigation involving ABC Company, a publicly traded company. If Gamma requests ABC’s annual financial report from the Securities and Exchange Commission (SEC), the information will be contained on which of the following SEC forms?

A. Form 8-A

B. Form 13-D

C. Form 6-K

D. Form 10-K

Answer 23

D. Form 10-K

Some important corporate filings with the SEC include:
• Annual Report of Publicly Traded Company (Form 10-K): Form 10-K is the title of the annual report that issuer companies must file; it contains the company’s income statement and balance sheet, information on its debt structure, foreign ownership, properties owned, subsidiaries, industry descriptions, depreciation, dilution, and other key business information.
• Quarterly Report of Publicly Traded Company (Form 10-Q): Form 10-Q is the title of the quarterly report that corporations must file with the SEC. These reports are similar to 10-K reports.
• Special Events in Publicly Traded Company (Form 8-K): Form 8-K, which is one of the most common types of forms filed with the SEC, is filed to notify investors of any unscheduled material events or corporate changes that are important to investors or security holders.
• Registration of Security (Form 8-A): Form 8-A is one of the forms used to register securities for offering to the public; it contains information regarding the type of security, details of the issuance, and information about the issuer.
• Registration of Security by Successor (Form 8-B): Form 8-B is a filing with the SEC that concerns the registration of securities of certain successor issuers; it contains the name of the issuer and the relationship to the primary registrant/issuer.
• Special Events in Foreign Security (Form 6-K): Foreign private issuers must submit a Form 6-K. The information contained in a Form 6-K is similar to that contained in a Form 10-K and a Form 8-K.
• Report of Acquisition of Beneficial Ownership of 5 Percent or More of Capital Stock of Public Company (Form 13-D): Form 13-D must be filed when an investor acquires 5 percent of any public company. This form contains a description of the security, any agreements or other undertakings by the reporting entity, the sources of funds for the acquisition, the purpose of the acquisition, and the relationship of the parties. Also, if acquisition results in change of control, it contains background information on each person reporting.

Question 24

Which of the following is a type of information that can be obtained from the Internet archives?

A. Web content not indexed by standard search engines

B. Web content on a website that is protected by passwords

C. Web content posted on a website that has been removed

D. Web content on websites without any links pointing to them

Answer 24

C. Web content posted on a website that has been removed

The term Internet archives refers to archived versions of Web pages that have since been updated or are no longer available online. The most popular tool for searching the Internet archives is the Wayback Machine, located at www.archive.org. The Wayback Machine allows users to see archived versions of Web pages throughout time. Fraud examiners can use the Wayback Machine to find historical information, such as:
• A photo posted on a website that has been removed
• Content, views, writing, and opinions rescinded by an author
• A company’s old job ads, statements, affiliations, or product lines

Alternatively, the deep Web (also known as the invisible Web) refers to Web content that is not indexed by standard search engines. There are a number of reasons why the deep Web exists. For instance, there are sites where Web crawlers (search engine robots or spiders) cannot enter. Web crawlers are scripts that create a copy of a visited Web page which are later indexed by a search engine to provide faster searches. These deep Web resources include websites without any links pointing to them, certain file formats that search engines cannot handle, sites that have been blocked from crawler access, password-protected sites, and information stored in databases. Also, search engines limit the depth of their crawl on a website. Moreover, Web crawlers cannot crawl as quickly as pages are added or updated.

Question 25

It is illegal for a business to operate under a fictitious name. T/F

Answer 25

False
A fictitious name or doing business as (DBA) situation occurs when a business owner operates a company under a name that is different from his legal name. DBA information is typically filed at the county level, though many states require filing at the state level as well. Most states also require limited partnerships, trusts, and joint ventures to file DBA information at the state or county level. This information will provide insight into the true business venture behind the name.

Question 26

Acme Services, a brand-new business, has just been registered as a corporation in a particular state. Acme’s management wants to expand business outside of the state. Which of the following is TRUE?

A. Being incorporated in one state allows Acme to conduct business anywhere in the United States.

B. Some states will require Acme to register as a foreign corporation if Acme wishes to do business there.

C. Acme may now conduct business anywhere in the world.

D. Acme must register in every state in which it wishes to conduct business.

Answer 26

B. Some states will require Acme to register as a foreign corporation if Acme wishes to do business there.

Some states, but not all, require that foreign corporations (corporations which were incorporated in another state) be registered with the state corporation office if the foreign corporations transact business in that state. For example, if a corporation that was chartered in Delaware wishes to transact business in Texas, it must file an Application for Certificate of Authority.

Question 27

Which of the following types of information are NOT deemed to be public under the Freedom of Information Act (FOIA)?

A. Tax rolls and real property records

B. Voter registration and assumed names records

C. Telephone records, stock ownership records, trust records

D. Divorce and probate court records

Answer 27

C. Telephone records, stock ownership records, trust records

Information NOT deemed to be public under the FOIA includes:
• Banking records
• Trust records 
• Telephone records 
• Passenger lists
• Stock ownership

The FOIA provides for public access to the following information:
• Tax rolls
• Voter registration (with some redactions)
• Assumed names
• Real property records
• Divorce/probate suits

Question 28

A fraud examiner in an organized crime investigation believes a particular commercial restaurant is being used as a place of operation for the suspects. Which of the following types of records would be the LEAST likely to help the fraud examiner discover who owns the building?

A. Health department records

B. Fire department records

C. Voter registration records

D. Building permit records

Answer 28

C. Voter registration records

There are many public records at the local and state level that can help fraud examiners gather various types of information. To determine who owns a particular property, there might be direct information or leads found in the records of several agencies, including health and fire departments. Most local health or fire departments conduct routine inspections of businesses for health and safety code or fire code violations. These inspection records might contain valuable information about the business, its operations, the employees, and the owners.

Additionally, if a business or individual constructs a new building or makes improvements to an existing building, there should be a building permit on file with the local building authority. In addition, before most businesses can open their doors, the city or county might require that they possess certain permits. In many cases, the person applying for permits will be the owner or someone traceable to the owner.

Voter registration records contain valuable information such as an individual’s name, home address, date of birth, signature, and Social Security number. Usually, much of this information is withheld from the public for privacy purposes, but mailing address, date of birth, and party affiliation are sometimes available. However, this information is less likely than the other sources listed to identify the owner of a commercial building.

Question 29

Even when a victim refers a fraud case for criminal prosecution, the government will usually not disclose the contents of nonpublic records with the victim during the investigation. T/F

Answer 29

True
A wronged organization may make a criminal referral so that records can be subpoenaed by the government or obtained by a search warrant. Records obtained by law enforcement while executing a search warrant usually are available only to the government during the investigation and perhaps thereafter if not disclosed at trial. In addition, law enforcement agencies may also subpoena records, but usually law enforcement will not disclose the contents of such records with the victim or third parties.

Question 30

Green believes that Blue, a fraud suspect, has purchased hard assets with his ill-gotten gains. Which of the following sources would most likely contain information that Green could use to locate Blue’s possible hidden assets?

A. Registrar of voters

B. Bureaus of Vital Statistics records

C. Uniform Commercial Code (UCC) filings

D. Surveyor office records

Answer 30

C. Uniform Commercial Code (UCC) filings
Uniform Commercial Code (UCC) filings are public records of secured transactions in which the debtor(s) owes a stated value to a secured party or parties, and UCC filings can provide valuable information. They can help identify personal property that an individual or business has financed. UCC filings typically include the debtor’s name and address, the name and address of the secured party, the filing date, the filing number, the filing type, and the type of collateral pledged as security. Moreover, UCC filings might include documents such as tax liens, notices of secured interest in personal property, goods which are transported across state lines, bank notes and drafts (including funds transfers between banks), letters of credit, securities exchanges, and so on.

Question 31

Which of the following is a limitation of conducting a public database search online?

A. Online public records searches are limited in the area they cover, often requiring fraud examiners to search multiple jurisdictions

B. Information from online databases must be checked for accuracy and currency

C. Online coverage of public records varies widely from state to state

D. All of the above

Answer 31

D. All of the above

The main limitations of online public database searches include:
• Online coverage of public records varies widely from state to state, and therefore, there are many degrees of accessibility to public records between jurisdictions.
• Online public records searches are limited in the area they cover. Therefore, when looking for information on a subject, fraud examiners often must search for public records in multiple jurisdictions.
• Often, online public records are brief abstracts of the original public record.
• The source of the information compiled in an online database must be reliable.
• Fraud examiners must check information from online databases to determine if it is accurate and current.
• The records or publications compiled in an electronic format might cover only a limited period.
• Online searches can be erratic in the information they return.