Physical tampering prevention is a check tampering technique that is used to secure bank assisted controls.

The statement is fundamentally incorrect because it confuses a fraud prevention measure with a fraud perpetration technique. "Physical tampering prevention" refers to a category of internal controls designed to safeguard assets and documents, specifically to prevent or deter check tampering fraud. Conversely, a "check tampering technique" is a method used by a fraudster to commit the fraud. Therefore, a prevention measure cannot be a fraud technique; they are opposing concepts. Check tampering techniques include schemes such as forged maker, forged endorsement, and altered payee. Physical tampering prevention measures, such as securing blank check stock, using watermarked paper, and implementing access controls, are countermeasures against these very techniques.

The statement "True" is incorrect because it creates a logical contradiction. A measure designed for prevention (a control) cannot be a technique for commission (a fraud scheme). The purpose of physical tampering prevention is to secure assets and processes, including those related to bank-assisted controls, not to act as a method of attack.

1. Association of Certified Fraud Examiners. (2023). Fraud Examiners Manual, International Edition. In Section 2, "Financial Transaction and Fraud Schemes," the manual dedicates a chapter to Check Tampering. It explicitly defines check tampering schemes as those in which an employee "steals company funds by intercepting, forging, or altering a check drawn on one of the organization’s bank accounts" (p. 2.302). It lists specific schemes like forged maker, forged endorsement, and altered payee. A separate subsection, "Check Tampering Prevention," details controls such as maintaining physical security of checks and using Positive Pay, clearly distinguishing preventative controls from fraud schemes (pp. 2.333-2.335).

2. Albrecht, W. S., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2019). Fraud Examination (6th ed.). Cengage Learning. Chapter 12, "Check and Payment Tampering," describes the various methods fraudsters use to commit check tampering. In contrast, Chapter 5, "Fighting Fraud: An Overview," and subsequent chapters on control environments discuss preventative controls. The text consistently presents physical controls as a means to reduce the opportunity for fraud, which is the opposite of a fraud technique.

3. Singleton, T. W., & Singleton, A. J. (2010). Fraud Auditing and Forensic Accounting (4th ed.). John Wiley & Sons. Chapter 4, "Fraud Schemes," categorizes check tampering as a fraudulent disbursement. The text explains that controls are put in place to prevent such schemes. For instance, on page 108, it discusses the importance of "physical controls over cash and blank checks" as a key preventative measure, reinforcing the distinction between a control and a scheme.