Which method do dishonest contractors use to collude and evade the competitive bidding process?

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!

The method dishonest contractors use to collude and evade the competitive bidding process is by submitting token bids that are not genuine attempts. This strategy involves colluding with other bidders to create the illusion of competition while actually agreeing among themselves to manipulate the bidding outcome. By submitting bids that appear to be competitive but are intentionally set to lose, these contractors ensure that the winning bid aligns with their collusion agreements.

This tactic ultimately undermines the integrity of the bidding process, as it prevents honest competitors from having a fair chance at winning contracts. The token bids are designed to be high enough to ensure they do not win, thus allowing the orchestrated scheme to succeed. As a result, the correct understanding of this fraudulent strategy highlights how dishonest practices can distort competitive environments and harm overall market integrity.

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