Which scenario best describes a fictitious provider scheme?

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!

A fictitious provider scheme involves creating a fake entity or using stolen credentials to bill for services that were never rendered. In this context, the scenario where a thief uses a provider's ID to bill as a fake clinic directly exemplifies this kind of fraud. The thief impersonates a legitimate provider, enabling the submission of fraudulent claims for reimbursement without any actual medical service being provided. This fraudulent billing results in financial gain while exploiting healthcare systems.

Other scenarios involve questionable practices that might relate to service quality or unethical billing, but they do not capture the essence of a fictitious provider scheme as effectively. For example, billing for unnecessary tests focuses on overutilization rather than fictionalization of the provider, while medical professionals providing services without licenses pertains to the legality of the service providers rather than the authenticity of their identity. The case of inflating service costs with complex coding deals with manipulating billing codes rather than creating a nonexistent provider structure to facilitate fraudulent claims.

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