Which description best characterizes skimming in fraud terms?

Which description best characterizes skimming in fraud terms?

• A. The theft of off-book funds
• B. The theft of money that has appeared on the books
• C. A bank employee directing transfers
• D. A fictitious refund transaction

Answer: (A)

Skimming is the theft of cash before it is recorded in the accounting records—money that is off the books. That’s why this description best matches skimming: the fraud exploits funds that haven’t yet appeared in the books, leaving little trace until a reconciliation or cash count reveals the loss. If money has already been recorded, the theft is through a different route, not skimming. Similarly, directing transfers or creating fictitious refunds are forms of internal manipulation or refund fraud, not the pre-recording cash theft that defines skimming.

Skimming is the theft of cash before it is recorded in the accounting records—money that is off the books. That’s why this description best matches skimming: the fraud exploits funds that haven’t yet appeared in the books, leaving little trace until a reconciliation or cash count reveals the loss. If money has already been recorded, the theft is through a different route, not skimming. Similarly, directing transfers or creating fictitious refunds are forms of internal manipulation or refund fraud, not the pre-recording cash theft that defines skimming.