APRP Fraud Prevention & Detection

Question 1

What is payment card fraud and what are its primary types?

Accepted Answer

Unauthorized use of payment cards including card-not-present fraud, counterfeit cards, lost/stolen cards, and account takeover

Answer

Only forging physical credit cards

Answer

Fraud that only occurs at ATM machines

Answer

A type of bank accounting error

Question 2

What is the role of machine learning in fraud detection?

Accepted Answer

Analyzing transaction patterns in real-time to identify anomalies that indicate potential fraudulent activity

Answer

Replacing all human fraud analysts completely

Answer

Only detecting fraud after it has occurred

Answer

Machine learning has no application in fraud detection

Question 3

What is EMV chip technology and how does it prevent fraud?

Accepted Answer

A microprocessor chip in payment cards that creates a unique transaction code for each purchase, preventing counterfeit card fraud

Answer

A type of encryption for email communications

Answer

A mobile payment application

Answer

A government identification system

Question 4

What is social engineering in the context of payment fraud?

Accepted Answer

Manipulating people through deception to reveal confidential payment information or perform unauthorized actions

Answer

Engineering social media platforms

Answer

A team-building exercise for payment professionals

Answer

Designing user-friendly payment interfaces

Question 5

What is tokenization in payment security?

Accepted Answer

Replacing sensitive card data with a unique, non-reversible token that has no exploitable value if breached

Answer

A loyalty program using digital tokens

Answer

A method for counting coins in a cash register

Answer

A type of cryptocurrency payment system

Question 6

What are the key indicators of a potentially fraudulent transaction?

Accepted Answer

Unusual transaction amounts, geographic inconsistencies, velocity anomalies, and mismatched billing information

Answer

Only transactions over $10,000

Answer

Any transaction made outside business hours

Answer

Transactions using a new credit card