Certified Fraud Examiner Practice 2025 - Free Practice Questions and Study Guide.

The correct answer identifies an advanced fee scheme as the one involving fake vacation rentals. In these types of schemes, criminals often create fraudulent listings for vacation rentals, typically at attractive prices to entice potential renters. They may do this through appealing photographs and persuasive descriptions, tricking individuals into paying deposits or fees upfront before any rental agreement is finalized. Once the payment is made, the miscreant often disappears, leaving the victim without a rental and without recourse for recovery.

In contrast, tax evasion schemes focus on unlawfully avoiding the payment of taxes, which does not specifically pertain to vacation rentals. Investment fraud schemes center around misleading investors about opportunities or products, making promises of high returns; again, this does not relate directly to fake vacation rentals. Identity theft schemes involve stealing an individual’s personal information to commit fraud in their name, but do not inherently involve fake rental properties. Understanding these distinctions helps in recognizing how specific fraud types operate within their respective contexts.