CRB Risk Management & Fraud Prevention 2

Question 1

A customer reports that someone made several small test charges on their debit card before a large unauthorized purchase. This pattern is known as:

Accepted Answer

Card testing fraud

Answer

Card testing fraud involves making small transactions to verify a stolen card is active before committing larger fraudulent purchases.

Question 2

Under the Bank Secrecy Act, financial institutions must file a Currency Transaction Report (CTR) when a customer conducts cash transactions totaling more than:

Accepted Answer

$10,000 in a single day

Answer

CTRs must be filed for cash transactions exceeding $10,000 in a single business day, whether in one or multiple transactions.

Question 3

Which risk management framework component involves identifying potential losses before they occur and assigning probability ratings?

Accepted Answer

Risk assessment

Answer

Risk assessment is the process of identifying, analyzing, and evaluating potential risks and their likelihood of occurrence.

Question 4

A retail banker notices a longtime customer suddenly requesting large wire transfers to overseas accounts. The BEST first step is to:

Accepted Answer

Ask the customer questions to understand the purpose of the transfers

Answer

Bankers should gather additional information through customer due diligence before escalating, as there may be a legitimate explanation.

Question 5

The concept of 'tipping off' in AML compliance refers to:

Accepted Answer

Informing a customer that a SAR has been or may be filed about them

Answer

Tipping off is illegal under the BSA and occurs when a bank employee alerts a customer that their activity has triggered a SAR filing.

(CRB) Certified Retail Banker Practice Test

(CRB) Certified Retail Banker Practice Test

CRB Risk Management & Fraud Prevention 2