Certified Financial Crimes Investigator (CFCI) Practice exam

Question: 1 / 400

What do soft indicators of fraud typically reflect?

Tangible evidence of wrongdoing

Behavioral signs of potential dishonesty

Soft indicators of fraud primarily pertain to behavioral signs of potential dishonesty. Unlike hard indicators, which provide concrete evidence such as numerical discrepancies or physical documentation that points to fraud, soft indicators are more subjective and often based on observations of an individual's actions or the context of a situation.

These behavioral signs can include unusual changes in an employee's behavior, such as sudden defensiveness, reluctance to share information, or frequent absences. Understanding these softer indicators is crucial for investigators as they can serve as preliminary warning signals that warrant further investigation. Recognizing that fraud can often be detected not just through solid facts but through the nuanced behavior of individuals involved in financial transactions emphasizes the importance of a comprehensive approach to fraud detection.

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Numerical discrepancies in financial documents

Physical evidence like documents and records

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