Free Fraud Prevention & Security Questions and Answers 3 — Questions and Answers
Question 1: What type of fraud involves altering a notarized document AFTER the notarization has been completed?
- Identity fraud
- Straw man fraud
- Post-execution alteration fraud (Correct answer)
- Title fraud
Correct answer: Post-execution alteration fraud
Post-execution alteration fraud occurs when a party modifies the document after the notary has completed the notarial certificate. This is one reason notaries are encouraged to draw a line through blank spaces on documents before notarizing.
Question 2: To prevent unauthorized use of the notary seal impression, a notary should:
- Leave the seal on the desk so clients can see it
- Store the seal securely and keep it under the notary's exclusive control (Correct answer)
- Share the seal with trusted office staff for convenience
- Make a backup seal in case the primary is lost
Correct answer: Store the seal securely and keep it under the notary's exclusive control
A notary should keep their seal in a secure, locked location when not in use. The seal must never be left unattended or loaned to another person, as unauthorized use of the seal can result in fraudulent notarizations.
Question 3: A title company employee asks a notary to notarize several pre-signed mortgage documents by the borrower, who "will come in tomorrow." The notary should:
- Proceed — the title company is a trusted employer
- Refuse — notarizing without the signer's personal appearance is fraud (Correct answer)
- Proceed if the employer assumes liability in writing
- Proceed if the documents will be re-signed in front of the notary later
Correct answer: Refuse — notarizing without the signer's personal appearance is fraud
Notarizing pre-signed documents when the signer is not personally present (absent from the notarial act) is a form of absentee notarization and constitutes fraud, regardless of who is asking.
Question 4: In the context of notary security, what is a "credible witness"?
- A witness who can verify the document's legal accuracy
- A person who personally knows the signer and can vouch for their identity to the notary (Correct answer)
- A second notary who co-signs the notarial certificate
- A licensed attorney who observes the notarization
Correct answer: A person who personally knows the signer and can vouch for their identity to the notary
A credible witness is a person who personally knows the document signer and can vouch for the signer's identity to the notary when the signer does not have adequate ID. Most states allow one or two credible witnesses as an alternative to government-issued ID.
Question 5: Why should a notary draw a line through unused blank spaces in the notarial certificate before applying the seal?
- It makes the document look more professional
- It prevents post-completion insertion of false information into the certificate (Correct answer)
- It is required by the National Notary Association
- It signals that the notary has reviewed the document's content
Correct answer: It prevents post-completion insertion of false information into the certificate
Drawing a line through blank spaces prevents anyone from inserting false information into the certificate after the notarization is complete. This is a standard fraud-prevention practice.
Question 6: What is the risk if a notary signs blank notarial certificates to be used later by someone else?
- There is no risk if the notary trusts the recipient
- The blank certificates can be used to create fraudulent notarizations without the notary's knowledge (Correct answer)
- The practice is acceptable for time-saving in a busy office
- The certificates are only dangerous if they are not serialized
Correct answer: The blank certificates can be used to create fraudulent notarizations without the notary's knowledge
Signing blank notarial certificates is a serious fraud risk — it allows the certificates to be attached to any document without the notary's knowledge or involvement, enabling fraudulent notarizations.
Free Fraud Prevention & Security Questions and Answers 3
What type of fraud involves altering a notarized document AFTER the notarization has been completed?