According to fraud tree, cash has three following schemes:

The ACFE Occupational Fraud Classification System (“Fraud Tree”) places all cash-related asset-misappropriation schemes into three mutually exclusive categories:
1) Skimming (theft of cash before it is recorded),
2) Cash larceny (theft of cash after it is recorded), and
3) Fraudulent disbursements (theft accomplished by causing a payment for an improper purpose). These are the only three branches shown under “Cash” in the Fraud Tree; no other terms such as “cash distribution,” “fraud analysis,” or general “cash misappropriations” appear.

B: “Fraud analysis” and “cash misappropriations” are not Fraud Tree cash categories; skimming alone is insufficient. C: “Cash distribution” is not a Fraud Tree category; omission of skimming makes it incomplete. D: Includes non-existent “cash distribution” and “fraud analysis,” omits cash larceny and fraudulent disbursements.

1. Association of Certified Fraud Examiners (ACFE). Fraud Examiners Manual

2022 ed.

Section II: “Occupational Fraud and Abuse

” Fig. 2-1 Fraud Tree – Cash (pp. 2.102-2.103).

2. ACFE. Report to the Nations: 2022 Global Study on Occupational Fraud and Abuse

Appendix A “Occupational Fraud Classification System

” p. 80.

3. Wells

Joseph T. “Principles of Fraud Examination

” 5th ed.

Wiley

2019

Ch. 4

pp. 120-121.