APRP Fraud Prevention & Detection 3

Question 1

What is the primary purpose of a fraud score generated by an authorization decisioning system?

Accepted Answer

To rank the likelihood that a transaction is fraudulent so a decision can be made

Answer

Fraud scores quantify risk at the moment of authorization, enabling issuers or acquirers to approve, decline, or step up authentication based on risk level.

Question 2

Which fraud type involves a cardholder intentionally disputing a legitimate transaction to obtain a refund while keeping the goods or services?

Accepted Answer

First-party fraud / friendly fraud

Answer

Friendly fraud (first-party fraud) occurs when a legitimate cardholder falsely claims a transaction was unauthorized to receive a chargeback.

Question 3

Which authentication method provides the strongest protection against card-not-present fraud by requiring possession of the cardholder's mobile device?

Accepted Answer

Out-of-band one-time passcode (OTP)

Answer

An out-of-band OTP sent to the registered mobile device confirms physical possession, making it far harder for fraudsters who only have card credentials.

Question 4

In the context of APRP, 'bust-out fraud' typically involves:

Accepted Answer

Building credit history and then maxing out credit lines with no intent to repay

Answer

Bust-out fraud is a credit fraud scheme where a fraudster gradually builds a good credit profile before suddenly maxing out all available credit and disappearing.

Question 5

Which data element is most useful for detecting 'card-present' counterfeit fraud at the point of sale?

Accepted Answer

EMV cryptogram validation

Answer

EMV chip cryptograms are unique per transaction and cannot be replicated from skimmed magnetic stripe data, making them the key defense against counterfeit card fraud.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Fraud Prevention & Detection 3