Which of the Following Is an Example of Processor Fraud

question 23

Multiple Choice

Which of the following is an example of processor fraud?

• A)A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies.The invoices were for less than $300,an amount that often does not require purchase orders or approvals.A high percentage of the companies paid the bills.
• B)Two accountants without the appropriate access rights hacked into Cisco's stock option system,transferred over $6.3 million of Cisco stock to their brokerage accounts,and sold the stock.They used part of the funds to support an extravagant lifestyle,including a $52,000 Mercedes-Benz,a $44,000 diamond ring,and a $20,000 Rolex watch.
• C)The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files.They made several million dollars trading the securities.
• D)A fraud perpetrator scanned a company paycheck,used desktop publishing software to erase
• The payee and amount,and printed fictitious paychecks.

---

Definitions:

Non-discriminating Monopolist

A monopolist that charges all consumers the same price for its product.

Marginal Revenue

The added income resulted from the transaction of an additional unit of a product or service.

Monopolist

A single seller in a market with no close substitutes for the product or service, allowing for control over prices.

Non-discriminating Monopolist

A monopolist who charges a single price for its product to all consumers, regardless of market segment differences.