Fraud Prevention & Detection Flashcards
7 cards from real APRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fraud Prevention & Detection flashcards as text
Device fingerprinting in online fraud prevention works by:
Answer: Collecting attributes of the browser and device to create a unique identifier
Device fingerprinting aggregates attributes like browser type, OS, screen resolution, and installed fonts to create a unique profile that can be compared across sessions.
Which of the following best describes the '3-D Secure 2.0' (3DS2) protocol's improvement over the original 3DS?
Answer: It enables risk-based authentication, allowing frictionless flow for low-risk transactions
3DS2 introduces a rich data exchange between merchant and issuer to support risk-based decisioning, enabling frictionless authentication for low-risk transactions.
An issuer receives an unusually high number of decline reversals and resubmissions on a single merchant's transactions. This may indicate:
Answer: The merchant is using excessive retry logic, possibly to force through fraud
Excessive retry patterns on declined transactions can indicate attempts to force fraudulent transactions through or exploit authorization system weaknesses.
Which fraud prevention control is specifically designed to verify the physical presence of a card during a transaction?
Answer: EMV chip cryptogram
The EMV chip generates a dynamic cryptogram per transaction that requires physical chip interaction, confirming the card was present at the terminal.
In fraud risk management, 'link analysis' is primarily used to:
Answer: Identify relationships between entities such as accounts, devices, and IP addresses to uncover fraud rings
Link analysis maps connections between seemingly unrelated entities, which is critical for discovering organized fraud rings that individual transaction scoring would miss.
What is 'authorized push payment' (APP) fraud?
Answer: A victim is socially engineered into voluntarily sending a payment to a fraudster's account
APP fraud manipulates victims—often through impersonation or romance scams—into authorizing real-time payments themselves, making recovery very difficult.
Which of the following metrics best measures the effectiveness of a fraud detection model in minimizing losses while preserving revenue?
Answer: Net fraud loss rate adjusted for false positive impact on approval rate
Effective fraud management balances detected fraud losses against false positive-driven decline losses, making the combined net impact the most meaningful metric.