Question

Red Flags that are indicative of High
Fraud Risk Processes are... (Select all the
applicable options)
*Paperless ODC
*Inadequate separation of duties
*Access to sensitive account
information without adequate
supervision
*Low, steady transaction volume​

Answer 1

All of the given options are applicable as fed flags that are indicative of High Fraud Risk Processes.

• Paperless ODC - Lack of papers for ODC results in no proof being found during any investigation.
• Inadequate separation of duties - When there is inadequate separation of duties, more people have access to the information which will be handled by one employee
• Access to sensitive account information without adequate supervision - This will result in the illegal spread of information.
• Low, steady transaction volume - The employees do not have full transaction history but rather a low transaction volume did to hide their fraudulent ideas.