Preventing Fraud and Misconduct Flashcards
7 cards from real NNA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Preventing Fraud and Misconduct flashcards as text
Which of the following is generally prohibited conduct that can constitute misconduct by a notary?
Answer: Backdating a notarial certificate at a customer's request
Backdating makes the certificate false and is fraud regardless of who requests it.
A notary is asked to notarize a deed in which she is named as a grantee. What is the correct response?
Answer: Decline because she has a financial or beneficial interest in the transaction
A notary must be impartial and should not notarize documents in which she has a direct financial or beneficial interest.
An immigrant community member asks a notary to help prepare immigration forms, calling the notary a 'notario.' Why must a U.S. notary be careful?
Answer: In many Latin American countries a 'notario' is a lawyer, so implying that status can be unauthorized practice of law and consumer fraud
Using 'notario' or implying legal expertise misleads people and can be the unauthorized practice of law.
A credible identifying witness is used to identify a signer. Which statement best reflects fraud-prevention best practice?
Answer: The witness should personally know the signer and be identified by the notary, and ideally have no interest in the document
A credible witness must personally know the signer, be known to or identified by the notary, and should be impartial.
An employer instructs a notary employee to notarize signatures on documents left in her inbox, without the signers present. What should she do?
Answer: Refuse; the notary personally bears responsibility for her official acts
The notary commission belongs to the individual, and following an employer's improper instructions does not excuse misconduct.
A signer offers the notary an extra $200 'tip' to skip the journal entry. What does this suggest and how should the notary respond?
Answer: It's a red flag for fraud; decline the payment and the request, and follow normal procedures or refuse the notarization
Attempts to pay for skipping safeguards signal fraud, and accepting money above the allowed fee is itself misconduct.
Which practice best prevents a completed notarial certificate from being removed and attached to a different document?
Answer: Noting the document title, date and page count on the loose certificate and attaching it securely
Describing the document on the loose certificate and securely attaching it makes fraudulent transfer harder to accomplish.