The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:
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A. B. C. D.A
The correct answer to the question is B. Billing scheme.
A billing scheme is a type of occupational fraud in which an employee manipulates the payment process to cause a victim company to issue fraudulent payments for goods or services that they have not received. This scheme typically involves an employee who has access to the company's accounts payable system or is involved in the payment authorization process.
Here's a detailed explanation of the answer options:
A. Bogus claims: Bogus claims refer to fraudulent or false claims made by individuals or companies for reimbursement or payment of expenses. While bogus claims can be a part of a fraud scheme, it does not specifically refer to the scenario described in the question.
B. Billing scheme: A billing scheme is a fraudulent scheme where an employee intentionally creates false invoices or alters legitimate invoices to deceive a company into making payments for goods or services that were not received or were not legitimate. This scheme typically involves collusion between an employee and a vendor or a shell company set up by the employee. The fraudulent payments are often directed to the employee or an accomplice, resulting in financial loss for the victim company.
C. Reliance billing: Reliance billing is not a commonly used term in the context of fraud schemes. It does not specifically relate to the scenario described in the question.
D. Misappropriate claims: Misappropriate claims is not a widely recognized term in the field of fraud examination. It does not accurately describe the scheme mentioned in the question.
In summary, the scheme described in the question, where victim companies issue fraudulent payments for goods or services they have not received, is known as a billing scheme (option B). This scheme involves manipulating the payment process, creating false invoices, or altering legitimate ones to deceive the company into making fraudulent payments.