In a fictitious refund scheme, what does NOT occur?

In a fictitious refund scheme, the process involves manipulating return transactions to create the illusion of legitimate refunds and extract cash or assets unlawfully. Typically, a fraudster initiates a return transaction for merchandise that was never actually returned, allowing them to pocket the refund amount while the original items remain in the possession of the customer or are not returned to inventory.

In this context, when merchandise is said not to be returned to the stock room, it accurately reflects the nature of the fraud. Instead of returning the item, the fraudster is essentially pocketing the cash without any actual transaction occurring for returning merchandise. This means that item inventory remains falsely inflated, leading to discrepancies between actual stock levels and perceived inventory. Thus, option D accurately captures an essential element that does not occur in a fictitious refund scheme, making it the correct answer.

This explanation highlights the fundamental nature of such fraud schemes, where the manipulation occurs at the transaction level without the corresponding physical movement of merchandise.