NAB Fraud Prevention 3 — Questions and Answers
Question 1: Under Australian law, what is the maximum penalty for individuals convicted of serious fraud offences under the Criminal Code Act 1995?
- 5 years imprisonment
- 10 years imprisonment (Correct answer)
- 15 years imprisonment
- 25 years imprisonment
Correct answer: 10 years imprisonment
Under the Criminal Code Act 1995 (Cth), general fraud offences can carry penalties of up to 10 years imprisonment for serious cases.
Question 2: A fraudster calls a NAB customer posing as the ATO and claims the customer owes back taxes and must pay immediately via bank transfer or face arrest. This is an example of which fraud type?
- Phishing email fraud
- Government impersonation scam (Correct answer)
- Business email compromise
- Payroll fraud
Correct answer: Government impersonation scam
Government impersonation scams involve criminals pretending to be from agencies like the ATO or police to create urgency and coerce immediate payment.
Question 3: What is the primary purpose of a CVV (Card Verification Value) number on a payment card?
- To identify the card network (Visa or Mastercard)
- To provide an additional security layer for card-not-present transactions (Correct answer)
- To track the geographic location of a transaction
- To encode the customer's credit limit
Correct answer: To provide an additional security layer for card-not-present transactions
The CVV is a 3- or 4-digit security code that helps verify the physical card is present during online or phone transactions, reducing CNP fraud.
Question 4: Which red flag is most commonly associated with a business email compromise (BEC) attack targeting a company that banks with NAB?
- A supplier's invoice arrives via regular post
- An urgent email request to change a supplier's bank account details (Correct answer)
- A customer disputing a prior transaction over the phone
- Multiple small test transactions from a new account
Correct answer: An urgent email request to change a supplier's bank account details
BEC attacks frequently involve fraudsters impersonating suppliers or executives and requesting urgent changes to payment details to redirect funds.
Question 5: NAB advises customers to use a 'verification callback' when they receive an unexpected request to transfer funds. What does this involve?
- Clicking a verification link sent by NAB in an SMS
- Calling the requester back on a number independently sourced (not one they provided) (Correct answer)
- Using NAB's app to approve the transaction via biometrics
- Waiting 24 hours before completing any large transfer
Correct answer: Calling the requester back on a number independently sourced (not one they provided)
A verification callback means calling the person or organisation back on a known, independently verified number to confirm the request is legitimate before transferring funds.
Question 6: What is 'synthetic identity fraud'?
- Using a deceased person's identity to open accounts
- Combining real and fabricated personal information to create a fictitious identity (Correct answer)
- Stealing a child's identity to apply for credit
- Cloning a credit card using a physical skimming device
Correct answer: Combining real and fabricated personal information to create a fictitious identity
Synthetic identity fraud combines real information (like a valid Social Security or tax file number) with fabricated details to create a new false identity.
Question 7: How does two-factor authentication (2FA) help prevent unauthorised access to NAB online banking?
- It encrypts all transaction data stored on NAB's servers
- It requires a second form of verification beyond just a password, such as a one-time code (Correct answer)
- It limits logins to pre-registered devices only
- It automatically freezes accounts after three failed login attempts
Correct answer: It requires a second form of verification beyond just a password, such as a one-time code
2FA requires customers to provide a second piece of evidence (like an OTP sent to their phone) in addition to their password, making it much harder for fraudsters to gain access.
NAB Fraud Prevention 3
Under Australian law, what is the maximum penalty for individuals convicted of serious fraud offences under the Criminal Code Act 1995?