Question

Indirect fraud occurs when a company's assets go directly into the perpetrator's pockets without the involvement of third parties.

Option 1: True
Option 2: False

Answer 1

Option 2: False, Indirect fraud does not occur when a company's assets go directly into the perpetrator's pockets without the involvement of third parties. Identity theft involves the unauthorized acquisition and use of someone's personal information.

Step-by-step explanation:

Option 2: False

Indirect fraud occurs when a company's assets are misappropriated by the perpetrator but involve the assistance or collaboration of third parties. In this case, the assets do not go directly into the perpetrator's pockets without the involvement of others. Identity theft, on the other hand, refers to the unauthorized acquisition and use of someone's personal information without their consent. For example, if a rogue employee colludes with a supplier to inflate invoices and divert funds, it would be considered indirect fraud with the involvement of a third party.