Tuesday Test Review three
also known as the Currency and Foreign Transactions Reporting Act, was created to fight drug trafficking, money laundering, and other crimes.
Bank Secrecy Act of 1970
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.
False
In order for financial institutions to comply with the FTC Safeguards Rule, they must create a written information security program that keeps confidential how the institution collects and uses customer information.
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
False
The FDIC insures deposit accounts in the event of bank failure. If a bank fails, the FDIC returns the money that a customer put in the bank, no matter how great or small the amount.
False
established the national banking system in the United States.
National Bank Act of 1864
The purpose of the Gramm-Leach-Bliley Act __________________ is to fight identity theft.
Pre-texting rule
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?
Red Flags Rule
In November 2004, the FTC filed a complaint against Nationwide Mortgage Group, Inc. In its complaint, the FTC stated that Nationwide collected sensitive customer information, but that it had no policies and procedures in place to protect that information. It also stated that Nationwide failed to monitor its computer network for vulnerabilities that would expose stored customer information to attack. Which of the following rules did the Nationwide violate?
Safeguards rule
The Federal Reserve reports directly to:
The U.S. Congress
Which of the following must be protected per PCI DSS requirements?
an e-commerace web server
All of the following are examples of consumer financial information except:
biometric data
The Payment Card Industry Security Standards Council (PCI Council) is made up of representatives of the major credit card companies. The major credit card companies are also called credit card brands. Which of the following is not one of the major brands?
Chase bank
Before the PCI Council was formed, all major credit card companies shared the same security requirements that applied to the credit cards that they issued.
False
The Office of the Comptroller of the Currency (OCC) is led by a comptroller, which is an elected position.
False
In January 2007, TJX disclosed that hackers had breached its credit card systems. The company reported that the attackers might have accessed credit card data going back to 2002. It reported that 45.7 million credit and debit card numbers might have been disclosed. At the time, the breach was believed to be the largest ever. Banks and customers sued TJX in connection with the breach. State governments also sued the company for failing to protect the credit card information of state residents. Given the nature of this breach, which federal agency opened an investigation?
Federal Trade Commission
The mission of the _____________________ is to protect consumers and to make sure that business is competitive by eliminating practices harmful to business.
Federal trade commision
Which Gramm-Leach-Bliley Act rule requires federal bank regulatory agencies, the SEC, and the FTC to issue security standards for the institutions that they regulate?
Safeguards Rule
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
The purpose of the ______________________ is to address financial uncertainty and provide the nation with a more stable economy.
federal reserve system
