Pass-through schemes are usually undertaken by employees who receive inventory on the victim company's behalf.

Pass-through schemes are usually undertaken by employees who receive inventory on the victim company's behalf.

• A. False
• B. True
• C. Not sure
• D. Sometimes

Answer: (B)

Pass-through schemes exploit the receiving function to divert inventory. When someone is in charge of receiving goods for the victim company, they are in a prime position to route items to themselves or an associate while the company is billed and records show the goods were received. That access to both physical inventory and the receipt records creates the opportunity to pass goods through without immediate detection, which is why this type of fraud is commonly built around employees who handle inventory receipts. The statement reflects this typical pattern, so the best answer is that it is true.

Pass-through schemes exploit the receiving function to divert inventory. When someone is in charge of receiving goods for the victim company, they are in a prime position to route items to themselves or an associate while the company is billed and records show the goods were received. That access to both physical inventory and the receipt records creates the opportunity to pass goods through without immediate detection, which is why this type of fraud is commonly built around employees who handle inventory receipts. The statement reflects this typical pattern, so the best answer is that it is true.