Free Fraud Prevention & Security Questions and Answers 2

Question 1

Which action BEST protects against document fraud during a notarial act?

Accepted Answer

Thoroughly verifying the signer's identity using a current government-issued photo ID

Answer

Accepting the signer's verbal assurance of identity

Answer

Charging a higher fee for suspicious transactions

Answer

Contacting the document recipient to confirm the transaction

Question 2

A fraudster presents a high-quality forged driver's license to a notary. The notary's best defense is to:

Accepted Answer

Carefully examine security features such as holograms and microprinting, and consider using fingerprinting in the journal

Answer

Accept it because the notary cannot be expected to detect expert forgeries

Answer

Scan the ID and email it to law enforcement before proceeding

Answer

Refuse all photo IDs and require two alternative forms of identification

Question 3

Which practice MOST effectively deters signers who might attempt fraud?

Accepted Answer

Strictly requiring personal appearance and identity verification every time

Answer

Limiting notarizations to business hours only

Answer

Notarizing only for known repeat clients

Answer

Displaying a sign stating "fraud is illegal"

Question 4

Why is maintaining a notary journal an important fraud-prevention tool?

Accepted Answer

It creates a contemporaneous record that can verify whether a notarization was properly performed

Answer

It helps the notary track income for tax purposes

Answer

It is required to calculate the maximum fee allowed

Answer

It replaces the need for a notary seal

Question 5

A signer presents two government-issued IDs with different photographs. The notary should:

Accepted Answer

Refuse to proceed until the identity discrepancy is satisfactorily resolved

Answer

Accept whichever ID appears more current

Answer

Ask the signer to explain the difference and then proceed

Answer

Request a third form of ID and continue

Question 6

Requiring a signer's journal signature in the notary journal provides fraud prevention because:

Accepted Answer

It provides a handwriting specimen and evidence that the signer personally appeared

Answer

It allows the notary to charge a higher fee

Answer

It is required by federal law for all notarizations

Answer

It replaces the need for photo ID verification