What type of scheme was Jeff involved in when he cashed a counterfeit check for a friend?

In the scenario where Jeff cashed a counterfeit check for a friend, this action falls under the category of unauthorized disbursement of funds to an outsider. This type of fraud scheme involves an individual facilitating the release of funds that are not actually authorized by the proper account holder or institution. By cashing a counterfeit check, Jeff is effectively enabling a fraudulent transfer of money, which directly results in a loss for the financial institution that issued the funds.

Cashing a counterfeit check signifies that the funds were disbursed without legitimate authority, as the check itself is not valid. This type of fraudulent activity also indicates a lack of proper internal controls that could prevent such unauthorized actions from occurring, highlighting the importance of verifying the authenticity of checks before processing them.

In contrast, the other options relate to different forms of fraud schemes. False accounting entries involve manipulating accounting records, unauthorized use of collateral pertains to misusing assets pledged as security for a loan, and the transformation of funds through loans refers to managing funds obtained through credit, none of which accurately describes the action taken by Jeff in this instance. Thus, the nature of his involvement more closely aligns with unauthorized disbursement of funds.