APRP Emerging Payment Risks 2

Question 1

Which regulatory framework specifically governs stablecoin issuers in the US as of recent legislative proposals?

Accepted Answer

State money transmitter licenses with potential federal overlay

Answer

Stablecoin issuers currently operate under state money transmitter licensing, while federal legislation has proposed adding a federal overlay requiring reserve backing and prudential supervision.

Question 2

A merchant notices an unusual spike in chargebacks originating from transactions made via a Buy Now, Pay Later (BNPL) provider. What is the most likely root cause?

Accepted Answer

Friendly fraud by consumers exploiting BNPL's split payment structure

Answer

BNPL's deferred payment model creates incentives for friendly fraud, where consumers dispute charges after receiving goods to avoid installment payments.

Question 3

What is 'transaction laundering' in the context of emerging payment risks?

Accepted Answer

An undisclosed merchant processing transactions through another merchant's account

Answer

Transaction laundering occurs when an undisclosed merchant routes card transactions through a registered merchant's account, hiding the true nature of goods or services sold.

Question 4

Which feature of Central Bank Digital Currencies (CBDCs) poses the greatest privacy risk to payment ecosystem participants?

Accepted Answer

Full transactional visibility by the issuing central bank

Answer

CBDCs issued and tracked by central banks can give governments complete visibility into individual payment flows, raising significant civil liberties and surveillance concerns.

Question 5

An APRP candidate is analyzing risks in open banking ecosystems. Which threat vector is most unique to open banking compared to traditional payments?

Accepted Answer

Third-party API exploitation exposing consumer account data

Answer

Open banking's reliance on third-party API access to consumer accounts creates novel attack surfaces where a compromised API or malicious third-party provider can expose broad account data.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Emerging Payment Risks 2