Preview Questions Fraud Analyst | Role Specific Skill

Question 1: What is the primary purpose of a fraud risk assessment matrix in identifying risk?

Which action should you take?

Choose only one option

To determine whether a transaction should be processed

To categorize transactions into legitimate or fraudulent

To generate automatic fraud alerts

To assess the potential impact and likelihood of different types of fraud

Question 2: In the context of fraud detection, which of the following does the Payment Card Industry Data Security Standard (PCI DSS) focus on?

Which action should you take?

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Implementing credit score monitoring for clients

Protecting cardholder data

Monitoring employee activities in real-time

Preventing identity theft during online purchases

Question 3: How does transaction clustering improve risk identification in the context of fraud?

Which action should you take?

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It categorizes customers based on their transaction size

It focuses only on high-value transactions

It helps in verifying transaction authenticity

It groups similar transactions together, making it easier to spot outliers

Question 4: What is the significance of using clustering techniques in detecting fraud?

Which action should you take?

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They create new data points from existing transactions

They help group similar transactions or behaviors to spot unusual patterns

They are used only in post-fraud analysis

They are used to segregate legitimate and fraudulent transactions

Question 5: In a fraud case involving internal collusion, which analytical approach would be most effective for identifying patterns within a large number of accounts?

Which action should you take?

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Temporal analysis of transaction times

Network analysis to detect unusual connections

Linear regression to compare internal vs external data

Frequency analysis of transaction types

Question 6: Which regulation requires that financial institutions develop a compliance program to detect and prevent money laundering activities?

Which action should you take?

Choose only one option

USA PATRIOT Act

Dodd-Frank Act

The Securities Act of 1933

The National Bank Act