Question 1

_____ is a criminal act in which the perpetrator gathers personal information about a victim and then uses that information to obtain credit.

Accepted Answer

Identity theft is a criminal act in which the perpetrator gathers personal information about a victim and then uses that information to obtain credit without the victim's knowledge or consent. Pharming redirects legitimate website requests to a fake website. Due diligence refers to the investigation of a business or person before signing a contract, while money laundering is the process of concealing the proceeds of illegal activity.

Question 2

A _____ is a stored-value card with an embedded microchip that can store information.

Accepted Answer

A smart card is specifically designed to store information on an embedded microchip. Credit cards, debit cards, and charge cards may have a magnetic stripe or chip for processing transactions, but they do not have the same level of advanced technology as a smart card.

Question 3

Visa and MasterCard are _____ that are operated by the banks which issue credit cards to individual customers.

Accepted Answer

The answer of Visa and MasterCard are _____ that are...

Question 4

The delay that occurs between the time that a person writes a check and the time that check clears the person's bank is known as _____.

Accepted Answer

The delay between the time a check is written and when it clears the person's bank is known as "float." This is the amount of time that the check is in transit between banks and can take several days or even weeks depending on the location of the banks involved. The other choices (load, payback, prepayment) do not accurately describe this delay.

Question 5

With a(n) _____, credit theft is much more difficult because the key to unlock the encrypted information is a PIN.

Accepted Answer

Smart cards have a microchip that stores encrypted data, such as credit card information. The key to unlock the encrypted data is a PIN, making credit theft more difficult. Debit and credit cards may also have a PIN, but they do not have the added security measure of encryption. Identification cards usually do not have any financial information stored on them.

Question 6

Anonymous digital cash is digital cash that cannot be:

Accepted Answer

Anonymous digital cash is designed to be untraceable, meaning it cannot be linked back to the person who spent it. This is a crucial feature for maintaining privacy and security in digital transactions. The other options - being unable to be handled by a trusted third party, being unable to be held in online storage systems, and not serving as a substitute for government-issued physical currency - may or may not be true of anonymous digital cash, depending on the specific implementation.

Question 7

A _____ can be used as a hardware-based digital wallet.

Accepted Answer

A smartphone can be used as a hardware-based digital wallet through the use of mobile payment platforms such as Apple Pay, Google Wallet, and Samsung Pay. These platforms allow users to store their credit and debit cards digitally and make payments using their smartphones at point-of-sale terminals.

Question 8

Prepaid cards sold with the intention that they be given as presents are called _____.

Accepted Answer

The answer of Prepaid cards sold with the intention that they...

Question 9

_____ are fees charged by banks for providing payment card processing services to merchants.

Accepted Answer

The answer of _____ are fees charged by banks for...

Question 10

_____ are responsible for evaluating their customers' credit standings and establishing appropriate individual credit limits.

Accepted Answer

The answer of _____ are responsible for evaluating their customers'...

Question 11

A _____ requires no download time or installation on a user's computer.

Accepted Answer

Server-side digital wallets are stored on the server of the service provider, meaning users can access them through the internet without needing to download or install anything on their own computers.

Question 12

_____ is spending a particular piece of electronic cash twice by submitting the same electronic currency to two different vendors.

Accepted Answer

Double spending refers to the act of spending the same electronic currency twice by submitting it to two different vendors. It is a major concern in the digital currency domain and can be prevented by using various techniques such as proof-of-work and public ledgers. Blind signing, money laundering, and spear phishing are not related to the concept of double spending.

Question 13

_____ allows for contactless data transmission over short distances and can also be used if a smartphone is equipped with a chip similar to  those that have been used on payment cards for a number of years.

Accepted Answer

The answer of _____ allows for contactless data transmission over short...

Question 14

_____ is a technique used by criminals to convert money that they have obtained illegally into cash that they can spend without having it identified as the proceeds of an illegal activity.

Accepted Answer

The answer of _____ is a technique used by criminals...

Question 15

A _____ stores information on a customer's computer.

Accepted Answer

A client-side digital wallet is stored on a customer's computer or device, whereas a server-side digital wallet is stored on a company's server. A hardware-based digital wallet would be a physical device like a USB drive, and a mobile-based digital wallet would be an app on a customer's phone.

Question 16

The basic structure of a _____ involves a perpetrator who sends e-mail messages to a large number of recipients who might have an account at a targeted Web site.

Accepted Answer

The described structure is typical for a phishing attack, where the perpetrator aims to deceive the recipients into revealing sensitive information, such as login credentials or personal data. The other options, such as due diligence process, money laundering process, or chargeback scheme, don't fit the given scenario.

Question 17

_____ is a general term that describes any value storage and exchange system created by a private entity that does not use paper documents or coins and that can serve as a substitute for government-issued physical currency.

Accepted Answer

The answer of _____ is a general term that describes...

Question 18

To process payment cards for Internet transactions, an online merchant must set up a(n) _____ with an acquiring bank.

Accepted Answer

The answer of To process payment cards for Internet transactions,...

Question 19

With a(n) _____, a user can pay off the entire card balance or pay a minimum amount each billing period.

Accepted Answer

The answer of With a(n) _____, a user can pay...

Question 20

Businesspeople often use the term _____ as a general term to describe all types of plastic cards that consumers use to make purchases.

Accepted Answer

The answer of Businesspeople often use the term _____ as...

Quiz 11: Payment Systems for Electronic Commerce