CFE – Financial Transactions and Fraud Schemes — Question 66

Tram is a branch manager at a financial institution. She is responsible for putting several preventive measures into effect to safeguard the bank and its customers from electronic funds transfer (EFT) fraud. Which of the following is a measure Tram should take to prevent EFT fraud?

Answer options

• A. Mail PINs and other associated account information together to reduce their chances of being lost in the email.
• B. Send a welcome letter to new customers to determine if the address submitted on the account application is valid.
• C. Track the use of an access device for the next several days if a customer reports that it has been lost or stolen.
• D. Make the same employee responsible for both the issuance of PINs and access devices.

Correct answer: D

Explanation

The correct answer is D because having the same employee responsible for both issuing PINs and access devices creates a conflict of interest and increases the risk of fraud. Options A, B, and C do not effectively prevent EFT fraud; sending PINs together could lead to loss, verifying an address does not address fraud directly, and tracking a lost access device is a reactive rather than a preventive measure.