NAF - Identifying Identity Theft: Review
of Red Flags Exam
The Identity Theft Prevention Program is designed to detect, prevent, and mitigate
identity theft at the opening of a covered account or an existing covered account. The
scope includes all of the following EXCEPT: - correct answer-Posting identity theft
warnings to customers on lobby cards
Recovery rates from fraud are: - correct answer-Low
A report regarding compliance with the regulatory requirements of the Identity Theft
Prevention Program should be prepared by staff on at least a/an _________ basis for
review by the board of directors or appropriate designated persons. - correct answer-
Annual
You must be aware of how identity thieves work so that you can take steps to protect
yourself and your customers. - correct answer-True
A covered account is primarily for commercial customers. - correct answer-False
If a person who requests a consumer report receives notice from the consumer
reporting agency that there is a discrepancy between the consumer's address in the
request and the consumer's address in the consumer report: - correct answer-The
lender must, through "reasonable" policies and procedures it has developed, form a
"reasonable" belief that a consumer report relates to the consumer in question
______ is (are) an institution's best defense - correct answer-The front line
Your institution has recently experienced a rise in the number of reports of identity theft.
One of the actions your institution should take would be: - correct answer-Review the
Identity Theft Program to see if it needs to be updated
Financial institutions are required to have a formal Customer Identification Program
(CIP) to ensure that they verify the identity of all new account customers. - correct
answer-True
You can help reduce the risk of identity theft when you do all the following except: -
correct answer-Look on social media
of Red Flags Exam
The Identity Theft Prevention Program is designed to detect, prevent, and mitigate
identity theft at the opening of a covered account or an existing covered account. The
scope includes all of the following EXCEPT: - correct answer-Posting identity theft
warnings to customers on lobby cards
Recovery rates from fraud are: - correct answer-Low
A report regarding compliance with the regulatory requirements of the Identity Theft
Prevention Program should be prepared by staff on at least a/an _________ basis for
review by the board of directors or appropriate designated persons. - correct answer-
Annual
You must be aware of how identity thieves work so that you can take steps to protect
yourself and your customers. - correct answer-True
A covered account is primarily for commercial customers. - correct answer-False
If a person who requests a consumer report receives notice from the consumer
reporting agency that there is a discrepancy between the consumer's address in the
request and the consumer's address in the consumer report: - correct answer-The
lender must, through "reasonable" policies and procedures it has developed, form a
"reasonable" belief that a consumer report relates to the consumer in question
______ is (are) an institution's best defense - correct answer-The front line
Your institution has recently experienced a rise in the number of reports of identity theft.
One of the actions your institution should take would be: - correct answer-Review the
Identity Theft Program to see if it needs to be updated
Financial institutions are required to have a formal Customer Identification Program
(CIP) to ensure that they verify the identity of all new account customers. - correct
answer-True
You can help reduce the risk of identity theft when you do all the following except: -
correct answer-Look on social media
