APRP Fraud Prevention & Detection 5

Question 1

Which regulatory requirement obligates US financial institutions to file a Suspicious Activity Report (SAR) when fraud is suspected above a certain threshold?

Accepted Answer

Bank Secrecy Act (BSA)

Answer

The Bank Secrecy Act and its implementing regulations require financial institutions to file SARs when transactions suggest criminal activity, including fraud, above reporting thresholds.

Question 2

A fraud analyst notices that disputed transactions share the same IP geolocation — a country the cardholder has never visited. This is an example of using which fraud signal?

Accepted Answer

Geolocation anomaly detection

Answer

Geolocation anomaly detection compares the transaction origin's IP location against cardholder behavioral history to flag geographically implausible activity.

Question 3

What distinguishes 'first-party misuse' from 'third-party fraud' in consumer payments?

Accepted Answer

First-party misuse is committed by the account holder; third-party fraud is committed by someone other than the account holder

Answer

First-party misuse means the legitimate account owner abuses the account (e.g., friendly fraud), whereas third-party fraud involves an outside party acting without the account holder's knowledge.

Question 4

Which data sharing practice helps issuers detect account takeover by alerting them when a cardholder's personal information appears in a known data breach?

Accepted Answer

Dark web monitoring and breach intelligence feeds

Answer

Dark web monitoring services scan criminal marketplaces and breach databases to alert issuers when customer credentials or card data appear, enabling proactive account protection.

Question 5

A payment risk professional recommends step-up authentication only for transactions above a defined risk threshold. This approach is an example of:

Accepted Answer

Risk-based authentication

Answer

Risk-based authentication applies additional verification only when a transaction's risk score exceeds a threshold, balancing security and customer friction.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Fraud Prevention & Detection 5