Fraud In E-commerce

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Question 1
Free
Multiple Choice

Which activity is used legitimately by companies to monitor network traffic, but may also be used illegally to capture confidential information?

Choose correct answer/s
A

Sniffing

B

Spoofing

C

Hijacking

D

Impersonation

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Question 2
Free
Multiple Choice

Traditional ___ reduces the risk of falsified identity.

Choose correct answer/s
A

CSS (Cascading Style Sheets)

B

EDI (Electronic Data Interchange)

C

WWW (World Wide Web)

D

SQL (Structured Query Language)

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Question 3
Free
Multiple Choice

What is the most important aspect of internal control?

Choose correct answer/s
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

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Question 4
Free
Multiple Choice

What is biometrics?

Choose correct answer/s
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

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Question 5
Free
Multiple Choice

Which is not a method of proactive e-commerce fraud prevention?

Choose correct answer/s
A

Encryption

B

Firewalls

C

Digital Signatures

D

Biometrics

E

All of the above

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Question 6
Multiple Choice

The best way to reduce fraud in an e-business environment is to focus on _______ ?

Choose correct answer/s
A
Customer transactions
B
Reducing opportunities through the implementation of appropriate internal controls
C
Designing new fraud-proof technologies
D
Apply Benford's law
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Question 7
Multiple Choice

Viewing information that passes along a network communication channel is referred to as:

Choose correct answer/s
A
Falsified Identify
B
Spoofing
C
Sniffing
D
Hijacking
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Question 8
Multiple Choice

Which of the following is a unique risk for e-commerce?

Choose correct answer/s
A
Merger or acquisition activity, which creates pressures to "improve the reported financial results"
B
Unproven or flawed business models, with tremendous cash flow pressures.
C
Borrowing or issuing stock, which adds additional pressures to "cook the books"
D
All of the above
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Question 9
Multiple Choice

Spoofing is which of the following?

Choose correct answer/s
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
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Question 10
Multiple Choice

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

Choose correct answer/s
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.
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Question 11
Multiple Choice

Locks on the doors to the computer room, is an example of which electronic control?

Choose correct answer/s
A
Biometrics
B
Independent checks on performance
C
Adequate separation of duties
D
Physical control over assets and records
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Question 12
Multiple Choice

Which is the most secure method of computer authorization?

Choose correct answer/s
A
Digital Signatures
B
Passwords
C
Biometrics
D
Voice activation
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Question 13
Multiple Choice

Separation of duties falls under which of the following internal control element

Choose correct answer/s
A
Control activities
B
Risk assessment
C
Control environment
D
Monitoring
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Question 14
Multiple Choice

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

Choose correct answer/s
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
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Question 15
Multiple Choice

Which of the following are controls over authorization of transactions and activities?

Choose correct answer/s
A
Passwords.
B
Digital Signatures.
C
Biometrics.
D
All of the above.
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Question 16
Multiple Choice

Identify the true statement about control activities in an e-business environment.

Choose correct answer/s
A
Although the same types of control activities are used, they are not as effective in e-business.
B
Adequate separation of duties is not as important in e-commerce as it is in traditional brick-and-mortar businesses.
C
Proper authorization is a key control in e-business - passwords, firewalls, digital signatures and certificates, and biometrics are especially important and must be carefully monitored.
D
A and C only
E
All of the above
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Question 17
Multiple Choice

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

Choose correct answer/s
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.
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Question 18
Multiple Choice

Which of the following uses features of the human body to create secure access controls?

Choose correct answer/s
A
Biometrics
B
Spoofing
C
Biological Signatures
D
Physical science controls
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Question 19
Multiple Choice

All of the following make it easier for perpetrators within an organization to commit e-commerce fraud =except:

Choose correct answer/s
A
They know the control environment
B
They understand security mechanisms
C
They find ways to bypass security
D
All of the above
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Question 20
Multiple Choice

Which of the following is an important element of the control environment?

Choose correct answer/s
A
Integrity and ethical values
B
Board of directors and audit committee participation
C
Management's philosophy and operating style
D
All of the above
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