CBA Fraud Examination and Prevention 3

Question 1

What is 'social engineering' in the context of bank fraud?

Accepted Answer

Psychologically manipulating individuals into divulging confidential information or performing unauthorized actions

Answer

Social engineering is the psychological manipulation of people into disclosing confidential information, credentials, or performing actions that compromise bank security — targeting human behavior rather than technical vulnerabilities.

Question 2

Which fraud scheme involves a bank insider approving credit to related parties on preferential terms not available to the general public?

Accepted Answer

Self-dealing or insider abuse of position

Answer

Self-dealing or insider abuse occurs when bank employees use their position to extend credit, waive fees, or provide other benefits to themselves or related parties on terms unavailable to ordinary customers.

Question 3

What is the primary purpose of a bank's employee fraud hotline?

Accepted Answer

To provide an anonymous reporting channel for employees to report suspected fraud without fear of retaliation

Answer

A fraud hotline gives employees and others a confidential, anonymous channel to report suspected wrongdoing, encouraging reporting by protecting the identity and employment status of those who come forward.

Question 4

According to ACFE research, which fraud detection method uncovers the greatest percentage of occupational fraud cases?

Accepted Answer

Tips from employees, customers, or other parties

Answer

ACFE research consistently shows that tips — from employees, customers, vendors, and others — are the leading fraud detection method, uncovering more than 40% of all discovered cases, more than any other method.

Question 5

What is 'account takeover' fraud in the banking context?

Accepted Answer

A fraudster gaining unauthorized control of a customer's account to conduct unauthorized transactions

Answer

Account takeover occurs when a fraudster obtains a legitimate customer's credentials or authentication information and uses them to assume control of the account and conduct unauthorized transactions.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Fraud Examination and Prevention 3