CFE – Financial Transactions and Fraud Schemes — Question 75

Hannah is a branch manager at a financial institution. To safeguard the bank and its customers from electronic funds transfer (EFT) fraud, Hannah is putting several preventive measures into effect. Which of the following is NOT a measure Hannah should take to prevent EFT fraud?

Answer options

• A. Send a welcome letter to new customers to determine if the address submitted on the account application is valid
• B. Mail PINs and other associated account information together to reduce their chances of being lost in the mail.
• C. If a customer reports the loss or theft of an access device, cancel the existing card, PIN, or other form of access and issue a new one
• D. Separate the duties of bank employees so that responsibilities for the issuance of access devices are separate from the issuance of PINs

Correct answer: A

Explanation

The correct answer is A because sending a welcome letter does not directly prevent EFT fraud; it is more of a customer communication tool. Options B, C, and D are all measures that actively work to enhance security and reduce the risk of fraud by ensuring proper handling of sensitive information and responsibilities.