Fraud Examination and Prevention Flashcards
7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fraud Examination and Prevention flashcards as text
What is 'social engineering' in the context of bank fraud?
Answer: Psychologically manipulating individuals into divulging confidential information or performing unauthorized actions
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.
Which fraud scheme involves a bank insider approving credit to related parties on preferential terms not available to the general public?
Answer: Self-dealing or insider abuse of position
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.
What is the primary purpose of a bank's employee fraud hotline?
Answer: To provide an anonymous reporting channel for employees to report suspected fraud without fear of retaliation
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.
According to ACFE research, which fraud detection method uncovers the greatest percentage of occupational fraud cases?
Answer: Tips from employees, customers, or other parties
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.
What is 'account takeover' fraud in the banking context?
Answer: A fraudster gaining unauthorized control of a customer's account to conduct unauthorized transactions
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.
Which element of a bank's fraud prevention program is most critical for establishing a strong anti-fraud culture?
Answer: Tone at the top — visible senior management commitment to ethical conduct and zero tolerance for fraud
Tone at the top — management's visible, consistent commitment to ethics and their zero-tolerance enforcement of anti-fraud policies — is the foundation of an effective anti-fraud culture that influences all employee behavior.
When conducting a bank fraud investigation involving digital evidence, what is the correct first step in the evidence handling process?
Answer: Secure and forensically preserve digital evidence before conducting interviews or analysis
Proper forensic protocol requires securing and preserving digital evidence as the first step to prevent tampering, deletion, or corruption before interviews or analysis are conducted.