Free Fraud Prevention & Security Questions and Answers 2 — Questions and Answers
Question 1: Which action BEST protects against document fraud during a notarial act?
- Accepting the signer's verbal assurance of identity
- Thoroughly verifying the signer's identity using a current government-issued photo ID (Correct answer)
- Charging a higher fee for suspicious transactions
- Contacting the document recipient to confirm the transaction
Correct answer: Thoroughly verifying the signer's identity using a current government-issued photo ID
Thorough identity verification using a current government-issued photo ID is the notary's primary fraud-prevention tool. It confirms the signer is who they claim to be before the notarial act is completed.
Question 2: A fraudster presents a high-quality forged driver's license to a notary. The notary's best defense is to:
- Accept it because the notary cannot be expected to detect expert forgeries
- Carefully examine security features such as holograms and microprinting, and consider using fingerprinting in the journal (Correct answer)
- Scan the ID and email it to law enforcement before proceeding
- Refuse all photo IDs and require two alternative forms of identification
Correct answer: Carefully examine security features such as holograms and microprinting, and consider using fingerprinting in the journal
Carefully inspecting the ID's security features (holograms, microprinting, UV-reactive elements) can help detect forgeries. Some states allow or require the use of fingerprinting in the journal as an additional deterrent.
Question 3: Which practice MOST effectively deters signers who might attempt fraud?
- Limiting notarizations to business hours only
- Strictly requiring personal appearance and identity verification every time (Correct answer)
- Notarizing only for known repeat clients
- Displaying a sign stating "fraud is illegal"
Correct answer: Strictly requiring personal appearance and identity verification every time
Requiring personal appearance and identity verification for each notarization — rather than waiving or skipping these steps — is the most effective deterrent, since it requires the fraudster to physically appear and risk detection.
Question 4: Why is maintaining a notary journal an important fraud-prevention tool?
- It helps the notary track income for tax purposes
- It creates a contemporaneous record that can verify whether a notarization was properly performed (Correct answer)
- It is required to calculate the maximum fee allowed
- It replaces the need for a notary seal
Correct answer: It creates a contemporaneous record that can verify whether a notarization was properly performed
A notary journal creates a contemporaneous record of each notarial act, including the signer's identity and signature. In the event of disputed or fraudulent documents, the journal provides evidence of whether the notarization was properly performed.
Question 5: A signer presents two government-issued IDs with different photographs. The notary should:
- Accept whichever ID appears more current
- Refuse to proceed until the identity discrepancy is satisfactorily resolved (Correct answer)
- Ask the signer to explain the difference and then proceed
- Request a third form of ID and continue
Correct answer: Refuse to proceed until the identity discrepancy is satisfactorily resolved
Conflicting IDs with different photographs are a major red flag for identity fraud. The notary should refuse to proceed until the identity question can be resolved to the notary's satisfaction.
Question 6: Requiring a signer's journal signature in the notary journal provides fraud prevention because:
- It allows the notary to charge a higher fee
- It provides a handwriting specimen and evidence that the signer personally appeared (Correct answer)
- It is required by federal law for all notarizations
- It replaces the need for photo ID verification
Correct answer: It provides a handwriting specimen and evidence that the signer personally appeared
The journal signature creates a handwriting specimen tied to the notarial act. If the signer later claims they did not sign the document, the journal signature provides evidence of their appearance and participation.
Free Fraud Prevention & Security Questions and Answers 2
Which action BEST protects against document fraud during a notarial act?