Bank Code Security Flashcards
6 cards from real Bank Code practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Bank Code Security flashcards as text
What verification step do banks use to confirm a new ACH payee's routing number is valid?
Answer: Routing number check digit validation
Banks use the ABA check digit algorithm to mathematically validate routing numbers before processing ACH transactions.
How can a consumer protect themselves from fraudulent ACH debits using their account details?
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.
Under US federal law (Regulation E), how many days does a consumer typically have to report unauthorized ACH transactions?
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.
What is 'pretexting' in the context of bank code fraud?
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.
Which federal agency handles complaints about unauthorized ACH transactions affecting consumers?
Answer: CFPB (Consumer Financial Protection Bureau)
The CFPB handles consumer complaints about unauthorized electronic fund transfers and enforces Regulation E protections.
What security measure do banks use to protect SWIFT international wire transfers from fraud?
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.