CIPA Fraud Detection Techniques & Reporting 5

Question 1

When investigating potential elder financial exploitation, a CIPA advisor should look for which red flag first?

Accepted Answer

Sudden changes in banking activity, new authorized users, or large cash withdrawals inconsistent with lifestyle

Answer

Abrupt changes in financial behavior, especially when a new person gains financial control, are primary indicators of elder financial exploitation.

Question 2

A 'bust-out' fraud scheme in the credit card context involves:

Accepted Answer

Building credit legitimately over time then maxing out all available credit with no intent to repay

Answer

In a bust-out scheme, fraudsters establish credit legitimacy, max out all lines of credit simultaneously, then disappear without repaying.

Question 3

Which of the following best describes 'mule account' fraud?

Accepted Answer

An account controlled by a fraudster but opened in a victim's name, used to receive and transfer stolen funds

Answer

Mule accounts are used to receive and quickly transfer stolen funds, creating distance between the fraudster and the crime.

Question 4

Real-time fraud scoring systems assign risk scores to transactions based on:

Accepted Answer

Multiple weighted variables analyzed simultaneously at the point of transaction

Answer

Real-time scoring evaluates dozens of risk factors simultaneously (velocity, location, device, behavior) to generate a risk score within milliseconds.

Question 5

A CIPA professional advising a victim of tax-related identity theft should direct them to file which form with the IRS?

Accepted Answer

Form 14039 (Identity Theft Affidavit)

Answer

IRS Form 14039 is the Identity Theft Affidavit that victims file to alert the IRS that their SSN was used fraudulently to file a tax return.

(CIPA) Certified Identity Protection Advisor Practice Test

(CIPA) Certified Identity Protection Advisor Practice Test

CIPA Fraud Detection Techniques & Reporting 5