Question 1

Why must e-business organizations have proactive fraud prevention efforts in place?

Accepted Answer

A)  Because defrauding people is easier when perpetrators can't see the consequences to the fraud victim. 
B)  Because security measures often lag process development. 
C)  Because information systems are often complex. 
D)  All of the above. 
A)  Because defrauding people is easier when perpetrators can't see the consequences to the fraud victim. 
B)  Because security measures often lag process development. 
C)  Because information systems are often complex. 
D)  All of the above. D

Question 2

One of the greatest fallacies of e-commerce security is a prevention measure known as security through ___________.

Accepted Answer

A)  maturity 
B)  obscurity 
C)  purity 
D)  surety 
A)  maturity 
B)  obscurity 
C)  purity 
D)  surety B

Question 3

In traditional business, which of the following is not part of internal controls?

Accepted Answer

A)  Risk assessment 
B)  Monitoring 
C)  Control activities or procedures 
D)  None of the above 
A)  Risk assessment 
B)  Monitoring 
C)  Control activities or procedures 
D)  None of the above D

Question 4

All of the following are unique risks to e-commerce fraud except:

Accepted Answer

A)  Removal of personal contact between customer and company 
B)  Pressures to "cook the books" and meet analysts expectations 
C)  Lack of "brick-and-mortar" facilities 
D)  Inability to distinguish larger, well-established companies from smaller, faux companies 
A)  Removal of personal contact between customer and company 
B)  Pressures to "cook the books" and meet analysts expectations 
C)  Lack of "brick-and-mortar" facilities 
D)  Inability to distinguish larger, well-established companies from smaller, faux companies

Question 5

Which is not a method of preventing fraud through control activities

Accepted Answer

A)  Separation of Duties 
B)  Sniffing 
C)  Authorization of transactions and activities 
D)  Physical control over assets and records 
A)  Separation of Duties 
B)  Sniffing 
C)  Authorization of transactions and activities 
D)  Physical control over assets and records

Question 6

What is biometrics?

Accepted Answer

A)  A signature sent over the internet 
B)  Using unique features of the human body to create secure access controls 
C)  A medical device that forces subjects to tell the truth during interviews 
D)  Complex information systems implementation 
A)  A signature sent over the internet 
B)  Using unique features of the human body to create secure access controls 
C)  A medical device that forces subjects to tell the truth during interviews 
D)  Complex information systems implementation

Question 7

What is the primary electronic transaction and document control used in e-commerce?

Accepted Answer

A)  Encryption 
B)  Spoofing 
C)  Passwords 
D)  Biometric Controls 
A)  Encryption 
B)  Spoofing 
C)  Passwords 
D)  Biometric Controls

Question 8

When dealing with e-commerce fraud, the primary objective of fraudsters is to steal data. Which of the following is not a useful attribute (from the fraudsters' perspective) of data?

Accepted Answer

A)  Data can easily be converted to cash 
B)  Data can be copied rather than removed 
C)  Data can easily be transferred to any location in the world 
D)  Many managers lack the technical expertise to prevent data theft 
E)  All of the above are useful attributes of data 
A)  Data can easily be converted to cash 
B)  Data can be copied rather than removed 
C)  Data can easily be transferred to any location in the world 
D)  Many managers lack the technical expertise to prevent data theft 
E)  All of the above are useful attributes of data

Question 9

Which of the following are pressures commonly found in e-business?

Accepted Answer

A)  Dramatic growth, which creates cash flow needs 
B)  Expensive marketing of new products 
C)  Unproven business models 
D)  All of the above 
A)  Dramatic growth, which creates cash flow needs 
B)  Expensive marketing of new products 
C)  Unproven business models 
D)  All of the above

Question 10

___________ is defined by the book as "Changing the information in an email header or an IP address to hide identities".

Accepted Answer

A)  Digital signatures and certificates 
B)  Spoofing 
C)  Biometrics 
D)  Sniffing 
A)  Digital signatures and certificates 
B)  Spoofing 
C)  Biometrics 
D)  Sniffing

Question 11

In an electronic environment, no other control can better prevent fraud than the wise use of:

Accepted Answer

A)  Separation of duties 
B)  Physical control over assets and records 
C)  Independent checks on performance 
D)  Passwords 
A)  Separation of duties 
B)  Physical control over assets and records 
C)  Independent checks on performance 
D)  Passwords

Question 12

The process for detecting E-Business fraud is similar to detecting other types of fraud except:

Accepted Answer

A)  E-business is a different type of business than brick-and-mortar companies and must be understood prior to detecting fraud. 
B)  E-business doesn't have the same fraud risks of other companies 
C)  E-business fraud symptoms constantly change and cannot be narrowed down 
D)  E-business fraud detection works best when the queries are automated so that they examine every business transaction and business relationship. 
A)  E-business is a different type of business than brick-and-mortar companies and must be understood prior to detecting fraud. 
B)  E-business doesn't have the same fraud risks of other companies 
C)  E-business fraud symptoms constantly change and cannot be narrowed down 
D)  E-business fraud detection works best when the queries are automated so that they examine every business transaction and business relationship.

Question 13

Spoofing is which of the following?

Accepted Answer

A)  Any fraud scheme involving a 3rd party 
B)  Changing the information in e-mail headers or IP addresses 
C)  Creating false vendors 
D)  Creating a false doctor during an insurance scam 
A)  Any fraud scheme involving a 3rd party 
B)  Changing the information in e-mail headers or IP addresses 
C)  Creating false vendors 
D)  Creating a false doctor during an insurance scam

Question 14

Which of the following is not part of risk assessment in e-business?

Accepted Answer

A)  Falsified identity 
B)  Integrity and ethical values 
C)  Spoofing 
D)  Sniffing 
A)  Falsified identity 
B)  Integrity and ethical values 
C)  Spoofing 
D)  Sniffing

Question 15

___________ are self-contained programs that spread via direct transfer, email, or another mechanism.

Accepted Answer

A)  True viruses 
B)  Internet worms 
C)  Trojan Horses 
D)  Spyware 
A)  True viruses 
B)  Internet worms 
C)  Trojan Horses 
D)  Spyware

Question 16

Which is the most secure method of computer authorization?

Accepted Answer

A)  Digital Signatures 
B)  Passwords 
C)  Biometrics 
D)  Voice activation 
A)  Digital Signatures 
B)  Passwords 
C)  Biometrics 
D)  Voice activation

Question 17

Which elements of E-commerce are not risks unique to E-commerce?

Accepted Answer

A)  Cash flow constraints instigated by tremendous growth causing a need for more borrowing or issuing of stocks 
B)  More precise and frequent expectations by Wall Street, creating pressure to cook the books 
C)  Anonymous transactions 
D)  Invisible businesses-You don't know the size, or the location 
E)  A and B 
A)  Cash flow constraints instigated by tremendous growth causing a need for more borrowing or issuing of stocks 
B)  More precise and frequent expectations by Wall Street, creating pressure to cook the books 
C)  Anonymous transactions 
D)  Invisible businesses-You don't know the size, or the location 
E)  A and B

Question 18

Which of the following is not a risk associated with doing e-business?

Accepted Answer

A)  Data Theft 
B)  Sniffing 
C)  Spoofing 
D)  Vendor impersonation 
E)  All of the above are risks associated with doing e-business 
A)  Data Theft 
B)  Sniffing 
C)  Spoofing 
D)  Vendor impersonation 
E)  All of the above are risks associated with doing e-business

Question 19

What is the most important aspect of internal control?

Accepted Answer

A)  The personnel 
B)  The board and audit committee participation 
C)  A controlled system 
D)  All of the above are equally important aspects of internal control 
A)  The personnel 
B)  The board and audit committee participation 
C)  A controlled system 
D)  All of the above are equally important aspects of internal control

Question 20

According to the book, which 3 of the 5 traditional internal control elements are most important in ebusiness transactions?

Accepted Answer

A)  Control environment, risk assessment and monitoring 
B)  Risk assessment, control activities and information & communication. 
C)  Control environment, risk assessment and control activities 
D)  Control activities, information & communication and monitoring. 
A)  Control environment, risk assessment and monitoring 
B)  Risk assessment, control activities and information & communication. 
C)  Control environment, risk assessment and control activities 
D)  Control activities, information & communication and monitoring.

Why must e-business organizations have proactive fraud prevention efforts in place?

One of the greatest fallacies of e-commerce security is a prevention measure known as security through ___________.

In traditional business, which of the following is not part of internal controls?

All of the following are unique risks to e-commerce fraud except:

Which is not a method of preventing fraud through control activities

What is biometrics?

What is the primary electronic transaction and document control used in e-commerce?

When dealing with e-commerce fraud, the primary objective of fraudsters is to steal data. Which of the following is not a useful attribute (from the fraudsters' perspective) of data?

Which of the following are pressures commonly found in e-business?

___________ is defined by the book as "Changing the information in an email header or an IP address to hide identities".

In an electronic environment, no other control can better prevent fraud than the wise use of:

The process for detecting E-Business fraud is similar to detecting other types of fraud except:

Spoofing is which of the following?

Which of the following is not part of risk assessment in e-business?

___________ are self-contained programs that spread via direct transfer, email, or another mechanism.

Which is the most secure method of computer authorization?

Which elements of E-commerce are not risks unique to E-commerce?

Which of the following is not a risk associated with doing e-business?

What is the most important aspect of internal control?

According to the book, which 3 of the 5 traditional internal control elements are most important in ebusiness transactions?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

Legal Follow-Up

Filters

Exam 17: Fraud in E-Commerce

Why must e-business organizations have proactive fraud prevention efforts in place?

One of the greatest fallacies of e-commerce security is a prevention measure known as security through ___________.

In traditional business, which of the following is not part of internal controls?

All of the following are unique risks to e-commerce fraud except:

Which is not a method of preventing fraud through control activities

What is biometrics?

What is the primary electronic transaction and document control used in e-commerce?

When dealing with e-commerce fraud, the primary objective of fraudsters is to steal data. Which of the following is not a useful attribute (from the fraudsters' perspective) of data?

Which of the following are pressures commonly found in e-business?

___________ is defined by the book as "Changing the information in an email header or an IP address to hide identities".

In an electronic environment, no other control can better prevent fraud than the wise use of:

The process for detecting E-Business fraud is similar to detecting other types of fraud except:

Spoofing is which of the following?

Which of the following is not part of risk assessment in e-business?

___________ are self-contained programs that spread via direct transfer, email, or another mechanism.

Which is the most secure method of computer authorization?

Which elements of E-commerce are not risks unique to E-commerce?

Which of the following is not a risk associated with doing e-business?

What is the most important aspect of internal control?

According to the book, which 3 of the 5 traditional internal control elements are most important in ebusiness transactions?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, Divorce, and Tax Fraud

Legal Follow-Up

Filters