Fraud Risks and Prevention Quiz

Which of the following is NOT a category of operational risk?

• Internal fraud

• Market risk

• Damage to physical assets

• Execution, delivery, and process management

What does the Fraud Triangle consist of?

• Opportunity, Impact, Recovery

• Opportunity, Pressure, Rationalization

• Rationalization, Impact, Recovery

• Pressure, Recovery, Prevention

Which of the following is an example of internal fraud?

• Phishing attacks

• Insider trading

• SIM cloning

• Malware attacks

What is the primary objective of the Probability-Impact Matrix?

• To assess fraud mechanisms

• To analyze risk severity

• To identify vulnerabilities in IT systems

• To measure customer satisfaction

Which type of digital banking fraud involves using fraudulent voice calls to extract sensitive information?

• Vishing

• Phishing

• Malware attacks

• SIM cloning

What is a key characteristic of money mule operations?

• They use cloned SIM cards to conduct fraud.

• They involve third parties to launder illicit funds.

• They exploit unverified links for fraud.

• They use advanced AI for phishing.

Which of the following is an example of multi-factor authentication (MFA)?

• Password only

• Fingerprint and password

• Username and CAPTCHA

• Email ID and password

What is the primary purpose of Early Warning Systems in fraud detection?

• To replace manual audits

• To ensure compliance with anti-money laundering laws

• To identify potential fraud early

• To monitor employee behavior

Which is NOT a best practice for preventing credit card fraud?

• Using encryption for card data

• Conducting frequent phishing drills

• Implementing anti-skimming devices

• Disabling magnetic stripe usage where possible

What is the purpose of the RBI Central Fraud Registry?

• To penalize non-compliant banks

• To enable fraud reporting and sharing information

• To conduct financial audits

• To regulate lending practices