Which tactic has fraudsters used to disguise inventory by altering the apparent value of goods?

• A. Inflating unit costs used to price inventory
• B. Fabricating fake vendors
• C. Assembling pallets with hollow centers or bricks
• D. Stealing from customers

Answer: (C)

The tactic tests disguising inventory by changing how much stock appears to be on hand. By assembling pallets with hollow centers or bricks, a fraudster can present a pallet as if it’s a full load of goods when the actual quantity is much less. This creates a misleading impression during physical counts and audits, making the inventory value in records look higher than reality and concealing shortages or theft.

Other methods would alter cost or relationships (inflating unit costs changes the price recorded, fake vendors corrupt purchasing records, stealing from customers is external theft). They don’t directly modify the visible quantity of goods in storage the way padding pallets does, which is why this tactic best fits disguising inventory by altering apparent value.