Financial Transactions - Cheque and Credit Card Fraud

Question 0

Types of electronic funds transfer fraud schemes

157

Answer 0

• a biller might send a bill for services not rendered or for goods never sent
• A person who has obtained information about another person’s bank account might instruct a biller to obtain payment from the other person’s account
• a hacker might use password and username information to direct transfers from a customer’s bank account
• A payment processing employee might use customer banking or login information to direct illegitimate transfers
• A bank employee might use customer information to direct transfers from a customer’s account

Question 1

Measures that can be taken to prevent electronic fundstransfer fraud

156

Answer 1

• Send a “welcome” letter including the bank’s return address so that it will be returned if the applicant’s address is invalid
• Verify by telephone or additional mailings any change of address requests
• Separate duties of bank employees
• Segregate PINs from other account information when communicating with a customer
• Cancel all access devices and PINs

to segregate = isolieren, separieren

Question 2

What is “white plastic” in the context of credit card fraud?

158

Answer 2

Credit card-sized plastic embossed with account numbers and names often used in collusion with corrupt merchants

merchants = Händler, Kaufleute

Question 3

What is credit card skimming?

159

Answer 3

A scheme in which a device is used to scan customer’s credit card numbers in the midst of performing legitimate transactions

Question 4

What is a paperhanger?

160

Answer 4

Someone who is an expert in passing phoney cheques

Question 5

What is a demand draft?

161

Answer 5

A cheque created by a seller that has a buyer’s chequing account number but no signature

Question 6

What is an electrostatic detection apparatus?

162

Answer 6

A tool that allows fraud examiners to detect indented writing in the top few pages of a pad of paper

indented = eingerückt
Durchgerückte Handschriftenerkennung

Question 7

What is an electronic funds transfer?

163

Answer 7

Any transfer of funds, other than one originated by a cheque or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape that orders or purports to authorise a fiancial institution to debit or credit an account