APRP Fraud Prevention & Detection 2

Question 1

Which technique involves analyzing the velocity of transactions from a single card or account over a short time window to detect fraud?

Accepted Answer

Velocity checking

Answer

Velocity checking monitors how frequently a card or account is used within a defined time period to flag unusual bursts of activity.

Question 2

A fraudster uses stolen card data to make small test purchases before large fraudulent ones. This technique is best described as:

Accepted Answer

Carding

Answer

Carding involves testing stolen card credentials with small transactions to validate the card before committing larger fraudulent purchases.

Question 3

What does 'false positive' mean in the context of fraud detection systems?

Accepted Answer

A legitimate transaction incorrectly flagged as fraud

Answer

A false positive occurs when a fraud detection system incorrectly blocks or flags a legitimate transaction, harming the customer experience.

Question 4

Which of the following is a primary benefit of using machine learning models over rule-based systems for fraud detection?

Accepted Answer

They can adapt to new fraud patterns without manual rule updates

Answer

Machine learning models continuously learn from new data, allowing them to detect evolving fraud patterns that static rule sets would miss.

Question 5

In payments fraud, 'synthetic identity fraud' refers to:

Accepted Answer

Combining real and fictitious information to create a new identity

Answer

Synthetic identity fraud blends real data (like a valid SSN) with fabricated information to create an identity that passes initial verification checks.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Fraud Prevention & Detection 2