Economic extortion can involve threats as a means to do what?

Prepare for the ACFE Certified Fraud Examiner (CFE) Financial Transactions and Fraud Schemes Test with our comprehensive quiz. Engage with flashcards, multiple choice questions, hints, and explanations. Ace your exam!

Economic extortion fundamentally involves leveraging threats to coerce an individual or entity into meeting certain demands, typically for money or other benefits. The correct answer reflects the concept that economic extortion can involve making misleading business decisions. By threatening an individual or organization, the extortionist can manipulate the victim into making choices that may not be in their best interest, thereby skewing the decision-making process and leading to potentially deceptive business outcomes.

This contrasts with the other options, which do not align as closely with the definition of economic extortion. For example, demanding money for legitimate business transactions lacks the element of coercive threats typically found in extortion. Similarly, obtaining favors from ethical officials would generally presume a level of integrity that is at odds with the nature of extortion and potential unethical behavior. Lastly, while financial reporting practices can be manipulated in various fraud schemes, it does not directly connect with the concept of extortion as threats are not necessarily a part of such practices.

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