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Nimfa-mama [501]
3 years ago
6

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avo

id responsibility for company liabilities.
Social Studies
1 answer:
notka56 [123]3 years ago
6 0

Answer: True

Explanation: A bust-out refers t a planned bankruptcy. It is a highly coordinated and sophisticated strategy usually in the areas of credit cards. Here, the perpetrators applies for and uses credit under his or her own name, or uses a synthetic identity, to make transactions while making on-time

payments to build trust and also maintain a good account standing, and over time he request more credit, often higher than the previous requested, with the intent of bouncing a final huge payment and abandoning the account.

obtains additional lines of credit . It is also called sleeper fraud.

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