Which of the following is NOT the type of billing scheme?
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A. B. C. D.C
Billing schemes refer to a type of occupational fraud in which a fraudster creates false invoices or alters legitimate invoices to divert company funds into their own pockets. The four types of billing schemes are as follows:
A. Invoicing via shell companies: In this type of scheme, a fraudster sets up a fake company, often called a shell company, and submits invoices to their employer for goods or services that were never provided. The employer then pays the fake company, and the fraudster pockets the money.
B. Invoicing via non-accomplice companies: In this type of scheme, a fraudster creates a fake invoice from a legitimate vendor that is not involved in the fraud. The fraudster then intercepts the payment for that invoice and pockets the money.
C. Invoicing via accomplice companies: In this type of scheme, a fraudster creates a fake invoice from a company that is a willing participant in the fraud. The fraudster and the accomplice company split the payment for the false invoice.
D. Personal purchases with company funds: In this type of scheme, a fraudster uses company funds to make personal purchases. This could involve using a company credit card for personal expenses or submitting false expense reports for reimbursement.
Therefore, the answer to the question is D. Personal purchases with company funds, as it does not fall under the category of a billing scheme. However, it is still a type of occupational fraud.