Detailed Explanation:
Rationale for Correct Answer:New account fraud occurs when fraudsters open accounts with false or stolen identities to exploit financial institutions before controls detect suspicious activity. Mobile deposits are particularly vulnerable because criminals can use counterfeit or altered images to deposit fraudulent checks quickly. This aligns with the Fraud Examiners Manual (2020) discussion of high-risk delivery channels for new account fraud.
Analysis of Incorrect Options:
A. Established accounts – Incorrect; fraud risk is higher in new accounts due to limited history and weaker controls.
C. Six months definition – Not an ACFE standard; there is no fixed six-month definition.
D. ATMs rarely targeted – Incorrect; ATMs are frequently exploited in new account fraud schemes.
Key Concept: New account fraud in identity theft and corruption-related schemes.
[Reference: ACFE Fraud Examiners Manual (2020), Identity Theft and New Account Fraud., , ]
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