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

Records of secured transactions are often used to detect hidden assets, which is crucial during fraud investigations. These records can provide insights into the assets that a borrower has pledged as security for a loan or other financial obligation. By examining these transactions, fraud examiners can uncover undisclosed properties or assets that may not be evident through standard financial reporting or during interviews with the involved parties.

In particular, secured transaction records can reveal the existence of liens or claims against an asset, which can direct investigators to potential areas where fraudulent concealment might occur. This capability is especially important in identifying assets that individuals or companies may have attempted to hide to avoid financial liability or during bankruptcy proceedings.

The other options, while they might involve general business processes, do not directly relate to the specific function of secured transaction records in fraud detection. For example, increasing sales revenue or improving supplier relations relates more to sales and purchasing strategies rather than fraud investigation. Likewise, verifying employee credentials is more focused on human resources and compliance than asset recovery or fraud detection.