CBP Digital Banking and Technology 2 — Questions and Answers
Question 1: Which authentication method uses behavioral characteristics such as typing rhythm and mouse movement patterns to verify a user's identity?
- Biometric authentication
- Behavioral biometrics (Correct answer)
- Multi-factor authentication
- Token-based authentication
Correct answer: Behavioral biometrics
Behavioral biometrics analyzes patterns in how users interact with devices, such as typing speed, mouse movements, and touchscreen gestures, to continuously verify identity.
Question 2: In digital banking, what does the term 'API economy' refer to?
- A cost-reduction strategy using automated processes
- A marketplace where banks sell data to third parties
- The ecosystem of interconnected services enabled by open API sharing between financial institutions and fintechs (Correct answer)
- The practice of charging fees for API access
Correct answer: The ecosystem of interconnected services enabled by open API sharing between financial institutions and fintechs
The API economy in banking refers to the interconnected ecosystem where banks, fintechs, and third parties share data and services through open APIs, enabling new products and partnerships.
Question 3: A bank deploys a chatbot that escalates complex queries to human agents. What is this hybrid model called?
- Robotic process automation
- Augmented intelligence
- Human-in-the-loop AI (Correct answer)
- Supervised machine learning
Correct answer: Human-in-the-loop AI
Human-in-the-loop AI combines automated AI responses for routine tasks with human agent intervention for complex or sensitive situations.
Question 4: Which regulation requires US banks to allow customers to authorize third-party access to their financial data through secure APIs?
- Dodd-Frank Act Section 1033 (Correct answer)
- Bank Secrecy Act
- Gramm-Leach-Bliley Act
- Community Reinvestment Act
Correct answer: Dodd-Frank Act Section 1033
Dodd-Frank Section 1033 grants consumers the right to access their financial data and authorize third parties to retrieve it on their behalf.
Question 5: What is 'card-not-present' (CNP) fraud in digital banking?
- Fraud involving counterfeit physical cards
- Unauthorized transactions made online or by phone without the physical card (Correct answer)
- ATM skimming attacks
- Fraud involving lost or stolen cards used at POS terminals
Correct answer: Unauthorized transactions made online or by phone without the physical card
CNP fraud occurs when stolen card credentials are used for online, phone, or mail-order transactions where the physical card is not required.
Question 6: In the context of digital banking infrastructure, what does 'zero-trust architecture' assume by default?
- All internal network traffic is safe
- No user or device should be trusted, even inside the corporate network (Correct answer)
- Encryption is sufficient to prevent breaches
- External traffic is always malicious
Correct answer: No user or device should be trusted, even inside the corporate network
Zero-trust architecture operates on the principle of 'never trust, always verify,' requiring authentication and authorization for every user and device regardless of network location.
Question 7: Which technology enables banks to process transactions at the network edge, reducing latency for real-time payments?
- Mainframe computing
- Edge computing (Correct answer)
- Batch processing
- Cold storage databases
Correct answer: Edge computing
Edge computing processes data closer to the source (the user or transaction point) rather than in a centralized data center, significantly reducing latency for real-time banking transactions.
CBP Digital Banking and Technology 2
Which authentication method uses behavioral characteristics such as typing rhythm and mouse movement patterns to verify a user's identity?