Deck 11: Security, Fraud, and Ethics

Question 1

Concealing unlawfully gained funds by converting them into seemingly legitimate income is called

A)forgery.
B)bouncing a check.
C) money laundering.
D) kiting a check.

Answer 1

C

Question 2

Most banks do not allow employees to accept gifts or money to influence their performance of duties.

Answer 2

True

Question 3

Which of these is NOT a suggested way to prevent check fraud?

A)Leave no extra spaces on a check.
B)Sign a check in the presence of a teller.
C) Have your Social Security number printed on your checks.
D) Reconcile your checking account regularly.

Answer 3

C

Question 4

The Bureau of Justice Statistics (BJS) estimated that more than 7 million people were victims of identity theft in 2014.

Question 5

A code of ethics is a statement adopted by a company to guide employees to act appropriately.

Question 6

Banks lose more money from fraud than from robbery.

Question 7

Which of these is the least common type of bank robbery?

A)morning glory robbery
B)note-passing robbery
C) takeover robbery
D) early-bird robbery

Question 8

Except routine processing, this occupies more resources of the banking industry than any other activity.

A)robbery prevention
B)fraud prevention
C) advertising
D) employee benefits

Question 9

War driving refers to illegally using financial information of active duty soldiers for personal gain.

Question 10

Most banks are required by law to install surveillance cameras and alarms.

Question 11

Spam is a slang term for something that is fraudulent or a swindle.

Question 12

Bank robbery was a much more serious problem in the 1930s and 1940s. Today, it rarely occurs.

Question 13

Financial institutions lose billions of dollars every year because of money laundering.

Question 14

A straw buyer works "undercover" for a bank to help banks identify cases of illegal house flipping.

Question 15

Employee training is the core of preventing robbery.

Question 16

Ethics should be the ultimate factor in making decisions in the financial world.

Question 17

The physical security of a bank includes all of the following EXCEPT

A)building design.
B)locking devices.
C) transportation security.
D) employee friendliness.

Question 18

Junk e-mail is commonly referred to as

A)sting.
B)spam.
C) phish.
D) flame.

Question 19

To discourage counterfeiting, the new $20 bill design includes color-shifting ink that changes from ____________________ when the note is tilted.

A)copper to blue
B)blue to green
C) green to gold
D) copper to green

Question 20

Marianne is a teller at River City Bank. A bank robbery is underway. Which of the following should Marianne NOT do?

A)give the robber what he wants
B)try to grab the gun from the robber's hand
C) call 911 as soon as possible
D) obey the robber's instructions

Question 21

A(n) ____________________ dilemma involves a situation that makes a person question what is the right or wrong thing to do.

Question 22

Check ____________________ requires opening accounts at two or more banks and using the "float time" of available funds to create fraudulent balances.

Question 23

What is identify theft?

Question 24

A computer program that monitors and limits incoming and outgoing online transmissions is called a(n) ____________________.

Question 25

A(n) ____________________ of interest occurs when two interests are at cross-purposes.

Question 26

Purposefully writing checks on closed accounts is called ____________________, or closed account fraud.

Question 27

Which act of Congress places restrictions on loans by corporations to their executives?

A)Sarbanes-Oxley Act of 2002
B)Expedited Funds Availability Act of 1987
C) Check 21 Act of 2003
D) Homeland Security Act of 2002

Question 28

An online criminal deposits $10,000 into a victim's account, telling the victim to send $9,500 to a third party. The victim supposedly gets to keep $500 as a "transaction fee." The criminal quickly cancels the initial deposit, though. If the criminal gets 14 people to agree to this scam, how much money has been stolen?

Question 29

How should surveillance cameras be positioned in a bank for maximum effectiveness?

Question 30

What is the difference between check forgery and check counterfeiting?

Question 31

____________________ is the act of sending a user an e-mail falsely claiming to be a legitimate enterprise in an attempt to solicit private information.

Question 32

Shady Sam robbed three banks last week: In one heist, he got away with $2,500; in the second, he netted $5,600; the third robbery was worth $4,350. After he was caught, police were able to recover 90 percent of the loot. Sam had spent the rest. What was the dollar amount of the stolen money that was NOT recovered?

Question 33

____________________ is a deception deliberately practiced to secure unfair or unlawful gain.

Question 34

A bill ____________________ is a device that sets off a security system when a bill or switch is pulled.

Question 35

The Second National Bank has just been robbed. What should bank employees do with the demand note left behind by the robber? Why?

Question 36

John and William are opening a restaurant together. William also works as a business loan officer at a local bank. John has applied to William's bank for a business loan for the restaurant, and William is responsible for approving the loan. This is a clear example of a

A)confidentiality violation.
B)money laundering scam.
C) check kiting scheme.
D) conflict of interest.

Question 37

An electronic warning placed on your accounts to monitor for suspicious financial activity is called a(n) ____________________.

Question 38

The new $20 bill design includes a(n) ____________________, a faint image similar to the large portrait. It is part of the paper itself and is visible from both sides when the bill is held up to the light.

Question 39

Jerry's Garage accepted $700 in counterfeit bills for a repair job. The company's insurance policy covers losses from counterfeit money up to $1,000 with a $250 deductible. What is the out-of-pocket loss experienced by Jerry's Garage?

Question 40

A(n) ____________________ barrier is a bulletproof plastic shield that can be positioned in front of each teller's station. It acts as a safety device.

Question 41

What can banks do to protect computer records from computer hackers and other cyberthieves?

Question 42

Briefly describe some signs of counterfeit checks.

Question 43

Briefly describe some of the safety devices mentioned in the text that are used to physically secure modern banks.

Question 44

Describe two distinct ways websites can be used for identity theft.

Question 45

Define ?ethics.

Question 46

Discuss what is generally covered in the confidentiality section of a bank's code of ethics.

Question 47

What are the powers of the Public Company Accounting Oversight Board, established by the Sarbanes-Oxley Act of 2002?

Question 48

Discuss some common sense precautions you can take to prevent becoming a victim of identity theft.​

Question 49

What is a straw buyer?

Question 50

What is the difference between a morning glory bank robbery and a takeover bank robbery?