CIPA Fraud Detection Techniques & Reporting 2

Question 1

Which behavioral analytics technique identifies fraud by establishing a baseline of normal user activity and flagging deviations?

Accepted Answer

Anomaly detection

Answer

Anomaly detection establishes a behavioral baseline and triggers alerts when activity deviates significantly from that norm.

Question 2

A customer's credit card is used for a $5 purchase followed immediately by a $3,000 purchase in a different country. This pattern is known as what?

Accepted Answer

Card testing followed by high-value fraud

Answer

Fraudsters often test stolen cards with small transactions before making large fraudulent purchases.

Question 3

Which federal agency should receive reports of suspected mail fraud involving identity theft?

Accepted Answer

U.S. Postal Inspection Service

Answer

The U.S. Postal Inspection Service has jurisdiction over crimes that use the U.S. mail system, including mail-based identity fraud.

Question 4

Device fingerprinting in fraud detection works by:

Accepted Answer

Identifying unique device attributes to track and flag suspicious devices

Answer

Device fingerprinting collects browser and hardware attributes to create a unique identifier, helping flag devices associated with past fraud.

Question 5

When a financial institution files a Suspicious Activity Report (SAR), who is it submitted to?

Accepted Answer

FinCEN (Financial Crimes Enforcement Network)

Answer

SARs are filed with FinCEN, the Treasury bureau responsible for collecting and analyzing financial intelligence to combat money laundering and fraud.

(CIPA) Certified Identity Protection Advisor Practice Test