CFE – Financial Transactions and Fraud Schemes — Question 72

Which of the following is FALSE regarding electronic payment security?

Answer options

• A. The lack of physical evidence makes electronic payment tampering more difficult to detect than traditional check tampering.
• B. The individual who makes electronic payments on the company's behalf should also set up ACH filters to ensure only designated individuals get paid
• C. ACH blocks allow account holders to notify their banks that ACH debits should not be allowed on specific accounts.
• D. Positive pay is recommended for ACH transactions to ensure their legitimacy.

Correct answer: A

Explanation

Option A is correct because the lack of physical evidence in electronic payments can indeed complicate the detection of tampering compared to traditional checks, making it a true statement and therefore false in the context of the question. Options B, C, and D are accurate statements about electronic payment security practices.