Bank Code Bank Code Security 2

Question 1

What verification step do banks use to confirm a new ACH payee's routing number is valid?

Accepted Answer

Routing number check digit validation

Answer

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?

Accepted Answer

Set up ACH debit blocks or filters with their bank

Answer

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?

Accepted Answer

60 days

Answer

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?

Accepted Answer

Impersonating someone to fraudulently obtain banking information

Answer

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?

Accepted Answer

CFPB (Consumer Financial Protection Bureau)

Answer

The CFPB handles consumer complaints about unauthorized electronic fund transfers and enforces Regulation E protections.

Bank Code Practice Test

Bank Code Practice Test

Bank Code Bank Code Security 2