APRP Risk Assessment & Mitigation

Question 1

What is a payment risk assessment?

Accepted Answer

A systematic evaluation of threats, vulnerabilities, and potential impacts to the payment system and its stakeholders

Answer

An assessment of the risk of a check bouncing

Answer

A review of the risk of accepting new payment methods

Answer

Only an evaluation of fraud losses

Question 2

What is a chargeback and how does it impact merchants?

Accepted Answer

A transaction reversal initiated by the cardholder's bank, resulting in the merchant losing the sale amount plus fees

Answer

A fee charged by the bank for processing a transaction

Answer

A bonus payment to the merchant for high sales volume

Answer

A refund processed by the merchant directly

Question 3

What is the role of velocity checking in payment risk management?

Accepted Answer

Monitoring the frequency and speed of transactions to detect unusual patterns that may indicate fraud

Answer

Checking the internet speed of payment processing systems

Answer

Measuring how fast cashiers process transactions

Answer

Timing how quickly customers complete checkout

Question 4

What is the purpose of a fraud investigation?

Accepted Answer

To determine whether a suspected fraudulent transaction is confirmed fraud, gather evidence, and prevent future occurrences

Answer

To investigate employees suspected of tardiness

Answer

To review vendor pricing for fraud

Answer

Only to recover lost funds from criminals

Question 5

What is cyber insurance for payment companies?

Accepted Answer

Insurance coverage protecting against financial losses from cyber attacks, data breaches, and system failures

Answer

Insurance for internet service providers

Answer

A warranty on payment processing hardware

Answer

Only applicable to technology companies, not payment companies

Question 6

What is the principle of defense in depth for payment security?

Accepted Answer

Multiple layers of security controls so that if one layer fails, others continue to protect the system

Answer

A military strategy unrelated to payment security

Answer

Using only one very strong security control

Answer

Defending against only the most common attack types