CFE – Financial Transactions and Fraud Schemes — Question 11

Which of the following statements regarding new account fraud is MOST ACCURATE?

Answer options

• A. Mobile deposits are at high risk for new account fraud because face-to-face transactions are not required.
• B. Automated teller machines (ATMs) are rarely targets of new account fraud because most have cameras installed.
• C. Fraud is more likely to occur in established accounts than in accounts that have been newly opened.
• D. New account fraud can be defined as any fraud that occurs on an account within the first year that it is open.

Correct answer: D

Explanation

The correct answer, D, accurately defines new account fraud as any fraudulent incidents occurring within the first year of the account being established. Option A incorrectly implies that mobile deposits are uniquely risky, while option B misrepresents the security of ATMs. Option C is also incorrect as it suggests established accounts are more prone to fraud, contradicting the nature of new account fraud.