The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others, is called:
Rationale for Correct Answer:This definition matches corruption, a broad category of occupational fraud in which employees use their influence in business transactions to gain personal benefit, in violation of their duties. Corruption schemes include bribery, conflicts of interest, illegal gratuities, and extortion.
Analysis of Incorrect Options:
A. Conflict of interest – A subtype of corruption, but narrower in scope.
C. Bribery – Also a subtype, but the definition given covers the broader category.
D. Overbilling – A billing scheme under fraudulent disbursements, not corruption.
Key Concept:Corruption as defined in the Fraud Tree.
[Reference:ACFE Fraud Examiners Manual (2020 International Edition), Corruption — Definition and Schemes., , , , , , ]
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