Bank Fraud Awareness Quiz

What is the term for fraud where a bank employee takes small amounts from multiple customer accounts to avoid detection?

• Kiting

• Smurfing

• Salami slicing

• Cash suppression

A bank teller is suspected of cash pilferage. What is the least likely indicator of such fraud?

• Frequent small cash shortages that are untraceable

• Large cash deposits made by the teller in their personal account

• Customer complaints about incorrect balance updates

• An increase in the teller's performance ratings over time

Which of the following is a key control to prevent cash suppression fraud?

• Teller limits on daily cash withdrawals

• Real-time cash reconciliation at every transaction level

• Assigning one teller per counter with no dual control

• Increasing the number of tellers to distribute cash transactions

A senior cashier manipulates records by delaying cash deposit entries to skim funds before the day's end reconciliation. What is this fraud known as?

• Salami slicing

• Kiting

• Lapping

• Cash suppression

Which of the following measures is least effective in preventing cash pilferage frauds?

• Rotation of tellers across different counters periodically

• Surprise audits and reconciliation checks

• Disabling cash transactions after banking hours

• Implementing dual authorization for large cash movements

A fraudulent bank employee creates FDs in the names of non-existent customers and withdraws the amount before maturity. What is the most effective way to detect such fraud?

• Conducting random physical verification of FD account holders

• Comparing deposit-to-withdrawal ratios for FD accounts

• Implementing auto-renewal for all FDs

• Ensuring that all FD withdrawals go through a single centralized officer

Which of the following cases raises the highest suspicion of FD fraud?

• An FD is closed prematurely within one month of opening

• An FD is auto-renewed multiple times over the years

• A customer updates their nominee details twice in six months

• A joint FD account has one holder frequently accessing the account

A bank employee redirects FD maturity proceeds to a different bank account than the original depositor's. Which of the following should have prevented this fraud?

• Requiring FD closure requests to be submitted in person only

• OTP-based customer confirmation before executing FD withdrawals

• Allowing customers to opt-out of manual verification

• Keeping FD maturity instructions flexible for customer convenience

Which of these regulatory actions directly addresses FD fraud risks in India?

• RBI's mandate on customer FD renewals through SMS verification

• SEBI's requirement for FD-related KYC updates every 3 months

• The Banking Ombudsman Scheme requiring all FD disputes to be resolved within 15 days

• RBI's restriction on premature FD closures without digital verification

The key movement register ensures accountability for locker access. Which of the following raises the highest red flag?

• Keys being issued to the same employee multiple times in a shift

• A missing entry for a key transaction, later explained as a clerical error

• A senior officer accessing keys without logging details in the register

• More than two employees handling the same key on a single day