CDS 345 Quiz 4
All of the following are examples of consumer financial information except: a. social security numbers b. address and telephone numbers c. employment history d. biometric data
Bio metric Data
A customer is any individual who obtains a financial product or service from a financial institution, whereas a consumer is an individual who has a continuing relationship with a financial institution. True ' False
False
The DSS offers a single approach to safeguarding sensitive cardholder data for all credit card issuers. It recommends 12 basic categories of security requirements that should be followed in order to protect credit card data. True False
False
The Federal Reserve System and the FTC enforces the Red Flags Rule for all financial institutions, which makes sense because financial institutions are highly regulated. True False
False
When a Red Flag is detected, it is necessary to conduct a thorough investigation no matter the circumstances of the situation. True False
False
The purpose of the ______________________ is to address financial uncertainty and provide the nation with a more stable economy. a. Office of the Comptroller of the Currency b. Office of Thrift Supervision c. Federal Reserve System d. Federal Deposit Insurance Corporation
Federal Reserve System
The mission of the _____________________ is to protect consumers and to make sure that business is competitive by eliminating practices harmful to business. a. Federal Trade Commission (FTC) b. Federal Financial Institutions Examination Council (FFIEC) c. National Credit Union Administration (NCUA) d. Office of Thrift Supervision
Federal Trade Commission
The _____________________ established the national banking system in the United States. a. National Bank Act of 1864 b. Gramm-Leach-Bliley Act c. Bank Secrecy Act of 1970 d. Bank Holding Company Act of 1956
National Bank Act of 1864
A merchant of an e-commerce Web site wants to accept credit cards as a form of payment. Which of the following must the merchant follow to ensure the safety of those payments? a. PCI DSS b. GLBA c. SOX d. FISMA
PCI DSS
Required by the Fair and Accurate Credit Transaction Act of 2003 (FACTA), which of the following is an anti-identity theft rule created by federal bank regulatory agencies (the Fed, FDIC, OTS, OCC, and NCUA) and the FTC? a. Privacy Rule b. Safeguards Rule c. Pretexting Rule d. Red Flags Rule
Red Flage Rule
Identity Theft Prevention Programs are required to detect, prevent, and mitigate identity theft in covered accounts. The written program must address both new and existing covered accounts. True False
True
Nonpublic personal information (NPI) is personally identifiable financial information that a consumer gives to a financial institution. NPI also includes private information that an institution gets from other sources. It includes lists or descriptions of consumers that are prepared by using this kind of information. True False
True
Pretexting, which is also known as social engineering, is the act of trying to gain access to customer information without proper authority to do so. True False
True
The Gramm-Leach-Bliley Act requires financial institutions to protect consumer financial information by complying with the Privacy Rule, the Safeguards Rule, and the Pretexting Rule True False
True
The PCI Council was formed in 2006 to create safeguards designed to protect credit card data. Any merchant or service provider who accepts credit cards must follow the safeguards. True False
True
The Red Flags Rule doesn't permit a private right of action, which means that individuals can't sue financial institutions or creditors if they violate the Red Flags Rule. True False
True
Under the Fair Credit Reporting Act of 1970 (FCRA), consumers can stop financial institutions from sharing their credit report or credit applications with affiliates. True False
True
Which of the following must be protected per PCI DSS requirements? a. an e-commerce Web server b. a print server for internal company use only c. a backup file server for a software testing department d. both B and C
an e-commerce Web server
All of the following are examples of consumer financial institutions except: a. savings and loans associations b. credit unions c. insurance companies d. the Federal Reserve System
the Federal Reserve System
The Federal Reserve reports directly to: a. the U.S. Supreme Court b. the U.S. Congress c. the president d. the Senate
the U.S. Congress
