Exam CFE - Financial Transactions and Fraud Schemes topic 1 question 139 discussion

Actual exam question from ACFE's CFE - Financial Transactions and Fraud Schemes

Question #: 139
Topic #: 1

[All CFE - Financial Transactions and Fraud Schemes Questions]

Hannah is a branch manager at a financial institution. To safeguard the bank and its customers from electronic funds transfer (EFT) fraud, Hannah is putting several preventive measures into effect. Which of the following is NOT a measure Hannah should take to prevent EFT fraud?

A. Send a welcome letter to new customers to determine if the address submitted on the account application is valid
B. Mail PINs and other associated account information together to reduce their chances of being lost in the mail.
C. If a customer reports the loss or theft of an access device, cancel the existing card, PIN, or other form of access and issue a new one
D. Separate the duties of bank employees so that responsibilities for the issuance of access devices are separate from the issuance of PINs

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Suggested Answer: A 🗳️

by vynyfulu at April 5, 2025, 12:23 p.m.

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_denw

1 week, 2 days ago

Selected Answer: B

Mailing PINs and access information together is not a recommended preventive measure — it actually increases the risk of EFT fraud: • If a fraudster intercepts the mail, they have everything needed to access the account. • Best practice is to mail them separately (and preferably through different channels), to reduce the risk of unauthorized access.

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