CBA Fraud Examination and Prevention 3

Question 1

What is 'social engineering' in the context of bank fraud?

Accepted Answer

Psychologically manipulating individuals into divulging confidential information or performing unauthorized actions

Answer

Using social media platforms to attract and recruit new banking customers

Answer

Engineering banking platforms to integrate with social media transaction systems

Answer

Analyzing social trend data to build predictive fraud detection models

Question 2

Which fraud scheme involves a bank insider approving credit to related parties on preferential terms not available to the general public?

Accepted Answer

Self-dealing or insider abuse of position

Answer

Identity theft and account takeover

Answer

Check kiting through affiliated accounts

Answer

Phishing and credential harvesting

Question 3

What is the primary purpose of a bank's employee fraud hotline?

Accepted Answer

To provide an anonymous reporting channel for employees to report suspected fraud without fear of retaliation

Answer

To allow customers to report dissatisfaction with interest rates and fees

Answer

To notify banking regulators directly of suspicious transaction activity

Answer

To collect customer feedback on the quality of digital banking services

Question 4

According to ACFE research, which fraud detection method uncovers the greatest percentage of occupational fraud cases?

Accepted Answer

Tips from employees, customers, or other parties

Answer

Internal audit reviews and formal control testing

Answer

External audit procedures performed by public accounting firms

Answer

Management review of financial statements and reports

Question 5

What is 'account takeover' fraud in the banking context?

Accepted Answer

A fraudster gaining unauthorized control of a customer's account to conduct unauthorized transactions

Answer

A legitimate corporate acquisition that transfers ownership of banking accounts

Answer

A bank freezing or restricting a delinquent customer's account access

Answer

A bank migrating customer accounts to a new core banking platform

Question 6

Which element of a bank's fraud prevention program is most critical for establishing a strong anti-fraud culture?

Accepted Answer

Tone at the top — visible senior management commitment to ethical conduct and zero tolerance for fraud

Answer

Deploying advanced AI-based data analytics and transaction monitoring software

Answer

Maintaining large fidelity bond insurance coverage for all employee positions

Answer

Scheduling frequent external audits and third-party penetration testing

Question 7

When conducting a bank fraud investigation involving digital evidence, what is the correct first step in the evidence handling process?

Accepted Answer

Secure and forensically preserve digital evidence before conducting interviews or analysis

Answer

Interview all potential witnesses before any digital evidence is collected

Answer

Analyze available transaction data first, then secure the remaining evidence

Answer

Notify the suspected employee to allow an opportunity for voluntary disclosure