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Awareness Flashcards

7 cards from real Banking Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Awareness flashcards as text

  1. What is 'phishing' in the context of banking security awareness?

    Answer: A cyberattack where fraudsters pose as legitimate institutions to steal sensitive information

    Phishing involves sending fraudulent emails or messages impersonating trusted entities like banks to trick recipients into revealing credentials or personal information.

  2. What does 'AML' stand for in banking compliance?

    Answer: Anti-Money Laundering

    Anti-Money Laundering (AML) refers to laws, regulations, and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

  3. Which of the following is a key indicator that a bank transaction may be suspicious?

    Answer: A customer making multiple cash deposits just under the $10,000 reporting threshold

    Structuring — making multiple small deposits to stay just under the $10,000 CTR threshold — is a red flag for money laundering and is itself a federal crime.

  4. What is the purpose of the Home Mortgage Disclosure Act (HMDA)?

    Answer: To require lenders to collect and report data on mortgage applications to detect discriminatory patterns

    HMDA requires financial institutions to publicly disclose mortgage loan data, enabling regulators and the public to identify potential lending discrimination.

  5. What is a 'Suspicious Activity Report' (SAR) in U.S. banking?

    Answer: A confidential report filed with FinCEN when a financial institution suspects illegal activity

    Banks must file a SAR with FinCEN within 30 days of detecting a transaction that may involve money laundering, fraud, or other criminal activity.

  6. What is 'identity theft' in banking contexts?

    Answer: The unauthorized use of someone's personal information to open accounts or obtain credit fraudulently

    Identity theft occurs when someone uses another person's personal information without consent to commit financial fraud, such as opening accounts or taking out loans.

  7. What is the significance of the 'Volcker Rule' for U.S. banks?

    Answer: It prohibits banks from engaging in proprietary trading and limits their investments in hedge funds

    The Volcker Rule, part of the Dodd-Frank Act, prevents banks from using customer deposits to make speculative trades for their own profit.