NAB Fraud Prevention 1 — Questions and Answers
Question 1: What is identity theft?
- The unauthorized use of someone's personal information for financial gain (Correct answer)
- Losing your identification
- Changing your name legally
- Having a common name
Correct answer: The unauthorized use of someone's personal information for financial gain
Identity theft involves criminals using stolen personal information to open accounts, make purchases, or commit crimes in the victim's name.
Question 2: What are common signs of a phishing email?
- Urgent language, misspelled sender addresses, requests for personal information, and suspicious links (Correct answer)
- Professional formatting always means it is legitimate
- Emails from banks are always authentic
- Short emails are always safe
Correct answer: Urgent language, misspelled sender addresses, requests for personal information, and suspicious links
Phishing emails often create false urgency, come from slightly misspelled addresses, ask for sensitive data, and contain links to fake websites.
Question 3: What should you do if you suspect your bank account has been compromised?
- Contact your bank immediately, change passwords, and monitor accounts for unauthorized activity (Correct answer)
- Wait and see if the problem resolves itself
- Only change your password
- Close all your accounts permanently
Correct answer: Contact your bank immediately, change passwords, and monitor accounts for unauthorized activity
Immediate action limits damage: contact the bank to freeze suspicious activity, change all related passwords, and monitor statements for unauthorized transactions.
Question 4: What is a Ponzi scheme?
- A fraudulent investment that pays returns to earlier investors using new investors' money rather than profits (Correct answer)
- A legitimate investment strategy
- A type of savings account
- A government bond program
Correct answer: A fraudulent investment that pays returns to earlier investors using new investors' money rather than profits
Ponzi schemes appear to generate returns but actually use new investors' money to pay earlier investors, eventually collapsing when new investment slows.
Question 5: What is chip technology in credit and debit cards?
- An embedded microchip that creates a unique transaction code for each purchase, reducing fraud (Correct answer)
- A decorative element on the card
- A tracking device
- A feature that increases the card's weight
Correct answer: An embedded microchip that creates a unique transaction code for each purchase, reducing fraud
EMV chip cards generate a unique one-time code for each transaction, making it much harder to create counterfeit cards compared to magnetic stripe technology.
Question 6: What is two-factor authentication and why should you use it?
- A security method requiring two forms of verification, significantly reducing unauthorized access (Correct answer)
- An optional convenience feature
- A way to log in faster
- A feature only for business accounts
Correct answer: A security method requiring two forms of verification, significantly reducing unauthorized access
Two-factor authentication adds a second verification step (like a text code) beyond your password, making it much harder for unauthorized users to access your accounts.
NAB Fraud Prevention 1
What is identity theft?