CRB Digital Banking & Technology Flashcards

What is the purpose of transaction monitoring systems in digital banking?

Answer: To detect suspicious activity and flag potential fraud in real time

Transaction monitoring systems analyze patterns across account activity to identify and alert on potentially fraudulent or unusual transactions.

When a customer uses a bank's mobile deposit feature, what happens to the physical check?

Answer: The customer should retain it for a period specified by the bank before destroying it

Banks typically advise customers to keep the physical check for a recommended period (e.g., 30-60 days) until the deposit clears, then securely destroy it.

Which technology do contactless debit and credit cards use for payment?

Answer: Near Field Communication (NFC)

Contactless cards use NFC technology to transmit payment data wirelessly when tapped near a compatible payment terminal.

What is the role of a bank's disaster recovery (DR) plan for digital banking systems?

Answer: To ensure continuity of banking services following a system failure or cyberattack

A DR plan defines procedures, backup systems, and recovery time objectives to restore digital banking services after disruptions.

What does 'screen scraping' mean in the context of fintech and banking?

Answer: Automatically extracting data from a banking website or app without an official API

Screen scraping involves third-party tools accessing banking interfaces to collect data, which poses security risks compared to secure API-based open banking.

A customer calls concerned about an unrecognized charge on their debit card. Under Regulation E, what is the deadline for the customer to report the unauthorized transaction to limit their liability?

Answer: 60 days from the statement date on which the transaction first appears

Under Regulation E, customers have 60 days from the statement date to report unauthorized electronic transactions to limit liability to $50 or less.