CFE Exam Quiz 38

Loose surveillance is used when subject does not needs to be constantly monitored. If the subject becomes suspicious, it is necessary to stop Loose surveillance.

The clothing of the observer should be in accordance with the area or group being surveyed. Dress should be conventional, unless the area is not suitable for a conventional dress.The attire should not be prominent, so that if the subject notices the observer, it is less likely to make any enduring impression.

Fraud examiners can search for individuals by conducting business filings. In many jurisdictions, individuals and corporations are required to file a doing business as (or an assumed or fictitious business name) statement with the jurisdiction where they conduct their business. The fraud examiner may collect information from fictitious business name files, including owner name business name, file date, and file number, by searching for such documents for a person or business name.

Observer should avoid quick and abnormal movements. He should avoid fake beards or wigs, as they are easily detectable. Observer should avoid unnecessary eye contact. Surveillance area and surroundings should be carefully studied before hand. Observer should know any alleys or dead-end streets around the area to avoid confrontation with the subject.

The observer should proceed to cross the intersecting road when the subject turns a corner in an uncrowded area. By looking up the road in the direction of the subject, the observer can see the place and actions of the subject.
In a crowded region, it is possible to continue surveillance from the same side of the road unless the subject is just around the corner. Do not instantly turn a corner behind the subject.The observer should be abreast of the target, when the subject turns a corner, to observe any contact with a person or entry into a building.

“A” observer, is stationed directly behind the target. The “A” observer follows the subject.
And “B” observer, follows “A” either on the same side of the street or from across the street.

When extreme caution is required, this method is used. The subject is followed for a certain distance with this technique and then the surveillance is stopped and the time noted. The next day, another surveyor picks up the subject at the time and location where the surveillance had earlier stopped and follows the subject again for a short distance.

Observers should usually remain in the same lane as the subject in order to prevent turning from the incorrect lane. Observers should alter direction, perhaps going around a block to avoid suspicion. In order to prevent unwanted attention, observers should restrict the quantity of light emanating from their cars at night.

Last name searches can be used if the previous address of the subject is unknown. The search results best if the name of the subject is not common; however, if the name of the subject is common, the search should include differentiating data.

Multi-spectral imaging can detect muddy ground, human and vehicle trails and other data. Useful for surveillance, particularly in big estates or industrial sites where aerial photography is forbidden. In a covert operation, satellite imagery can assist define methods to penetrate a site, create a site map and identify significant regions. Areas that are too distant, costly or harmful to send operatives, satellite images can be used to investigate them.

For one thing, the researcher will be told by a public record database whether there is a specific record or some of the information contained in that record, but usually, these databases will not provide a copy of the actual public record.
Therefore, there is now a wealth of information accessible by public record websites, but accessing online information is never a complete replacement for checking the public record itself.
If the information in the government’s records was incorrect, it will be incorrect in the public record vendor’s database as well.
Where a fraud examiner accesses those types of personal information via an online service, the laws governing the collection, distribution and use of consumer credit information that apply.

There are various methods that fraud examiners can use to capture information on social media sites and memorize the collection process, including the following:
-Take screen captures of relevant information.
-Print your content.
-Using screen recording software to create a monitor output digital recording.
-Convert web pages to a different format (for example, PDF).
-Use a website capture tool to navigate to each link on a web page and capture all of the content contained in those links, including embedded files and source code.

Fraud examiners perform two primary functions: data mining and data analysis to discover and interpret large amounts of data. Data mining is the science of looking for patterns with vast volumes of data. Data analysis refers to any analytical method used for data analysis and conclusions drawn from the results.

A tax lien is a legal hold or claims that a government entity places property (both real estate and personal property) on a taxpayer’s property to secure tax payment. Governments file tax liens with unpaid taxes on an individual’s assets.

Passive devices amplify the current light in the environment electronically. Sometimes these are referred to as starlight scopes.

TransUnion is another of the big three credit reporting agencies in the U.S., providing credit information and services to both consumers and businesses. In general, TransUnion is a global provider of business intelligence services and technology-based intelligence products, including innovative tools for credit decision-making and fraud prevention, advanced target marketing products, risk and productivity models, and portfolio management.

Conversations of the subject secretly photographed or recorded is usually recognized as something that a criminal prosecutor is sure to be effective, because little can be disputed by a criminal white collar when caught in the act of fraud.

Participant informants are not known are “moles”, Covert informants are.

First, keep as confidential as possible the identity of the informant. Second, check the source or informant’s data separately. Third, from independently verified data, create witness and documentary proof. And even after the suspect had been detained and convicted, the informant’s identity shouldn’t be disclosed to the public for his safety.

Contacts in the community should be made well before evidence in needed. Informant should be taken in confidence that his identity wont be revealed. Fraud examiner should mainly focus on the culpability of the informant because if he is more guilty than the suspect, the court might pass a ruling that the evidence provided by the informant is invalid and cannot be presented in front of the court.

Some sources want money for their evidence. Some provide information voluntarily, just because they feel obligated to do so and because they have trust in the fraud examiner. Some sources might provide evidence against the suspect because they have a disliking or grudge against him.

Both sources and informants are motivated by different things. Informant might provide evidence because he is closely involved with the suspect or because he is his competition and wants the suspect out of the way. Or because informant thinks that the fraud activities are now getting extremely out of hand and wants to stop it. Informant might also be motivated to provide information in exchange of reduced sentence.

Fraud inspectors should record all their interactions with the sources and informants to avoid any problems from arising. He cannot testify about anything the witness said, only the witness can testify about what he knows. And because of this, investigator should inform the informant before hand that his identity will be revealed if he is called to testify. Any money exchange between the informant/source and the investigator should be completely recorded and only on cash-on-delivery-of-information basis.

Information received from informants should be verified thoroughly before transferring the payment. Investigator should not make the informant commit any crime to gather evidence, he was not prepared to commit, to avoid a claim from the informant related to entrapment. This can be controlled by limiting the role of the informant. Informant might want to harm the investigator, so all meetings should be conducted in a place of investigator’s choosing and there should be at least two investigators in the meeting.

All contacts with sources/informants should be recorded in a memorandum by using symbols to denote them in order to keep their identities confidential. Sources should also be preceded by a “S,” followed by a unique number.The identity of the person should be kept in a safe file with restricted access.

Private fraud examiners cannot testify in place of their witness. Only the witness himself can testify about the information he has. Private fraud examiners cannot promise leniency to individuals, only prosecutor or the court can do that. He can inform the informant that the authorities will be informed of any corporation, which could benefit him in turn. Private fraud examiners can obtain evidence from sources/informants.

Absolute assurance of confidentiality can never be provided by examiner, whether he is appointed by government agency or privately. Fraud examiner is obligated not to provide absolute assurance to anyone if he is appointed by any government agency. Examiner should tell the truth to the informant that his identity will be held confidential until possible.

The fraud examiner won’t tell Mr. Kent, Jenny’s brother or any one at Mike’s office directly, but that doesn’t mean anyone else won’t. Whereas, it was promised to Mr. Eddy that no one will know about their deal.

There are inherent risks in the operation, so it can be hard to distinguish a rational complaint of an informant from a mere effort to escape the requirement of corporation. Harmed informants may refuse or can not continue to cooperate, and ill-treatment may decrease the agency’s credibility for future collaboration. It is best not to use sources and informants as “double agents” in continuing crimes. Such action is inherently dangerous and puts the investigator in a situation to protect the source or informant’s actions.

Operative is an informant who performs investigative procedures to obtain evidence on examiners directions. Operative should only perform these procedures after getting directions from the examiner, so the examiner does not faces problems due to any actions of the informant. Operatives usually lack training and experience, so constant supervision is required.