Bank Code Bank Code Security 2 — Questions and Answers
Question 1: What verification step do banks use to confirm a new ACH payee's routing number is valid?
- Manual telephone verification
- Routing number check digit validation (Correct answer)
- FDIC database lookup
- Federal Reserve approval
Correct answer: Routing number check digit validation
Banks use the ABA check digit algorithm to mathematically validate routing numbers before processing ACH transactions.
Question 2: How can a consumer protect themselves from fraudulent ACH debits using their account details?
- Use only cash for all transactions
- Set up ACH debit blocks or filters with their bank (Correct answer)
- Request a new routing number monthly
- Only use wire transfers
Correct answer: Set up ACH debit blocks or filters with their bank
Banks offer ACH debit block or filter services that allow consumers to restrict or approve which companies can debit their account via ACH.
Question 3: Under US federal law (Regulation E), how many days does a consumer typically have to report unauthorized ACH transactions?
- 15 days
- 30 days
- 60 days (Correct answer)
- 90 days
Correct answer: 60 days
Under Regulation E, consumers generally have 60 days from the statement date to report unauthorized electronic fund transfers to limit their liability.
Question 4: What is 'pretexting' in the context of bank code fraud?
- Sending phishing emails
- Impersonating someone to fraudulently obtain banking information (Correct answer)
- Skimming card data at ATMs
- Creating fake bank websites
Correct answer: Impersonating someone to fraudulently obtain banking information
Pretexting involves criminals impersonating someone (e.g., a bank employee or employer) to trick victims into revealing routing and account numbers.
Question 5: Which federal agency handles complaints about unauthorized ACH transactions affecting consumers?
- IRS
- SEC
- CFPB (Consumer Financial Protection Bureau) (Correct answer)
- CFTC
Correct answer: CFPB (Consumer Financial Protection Bureau)
The CFPB handles consumer complaints about unauthorized electronic fund transfers and enforces Regulation E protections.
Question 6: What security measure do banks use to protect SWIFT international wire transfers from fraud?
- Simple password authentication
- SWIFT's Customer Security Programme (CSP) with multi-factor controls (Correct answer)
- SSL certificates only
- Public key routing
Correct answer: SWIFT's Customer Security Programme (CSP) with multi-factor controls
SWIFT's Customer Security Programme (CSP) requires banks to implement mandatory security controls including multi-factor authentication and network segregation.
Bank Code Bank Code Security 2
What verification step do banks use to confirm a new ACH payee's routing number is valid?