Which term indicates indicators of potential insider fraud by employees?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Multiple Choice

Which term indicates indicators of potential insider fraud by employees?

Recognizing potential insider fraud hinges on spotting Employee Red Flags—visible signals in how an employee behaves or accesses systems that suggest misuse. These indicators come from the person’s actions, access patterns, or changes in behavior and prompt further review, monitoring, or investigation. Monitoring Policies are the preventative controls and procedures that organizations use to detect and deter improper activity; they aren’t the warning signs themselves. A SAR is a formal report filed with regulators after suspicious activity is detected, not a label for internal indicators. Unusual Transactions can signal problems, but they aren’t specific to insider fraud by employees and can arise from many sources. Employee Red Flags directly capture the idea of internal indicators pointing to potential insider risk.

Recognizing potential insider fraud hinges on spotting Employee Red Flags—visible signals in how an employee behaves or accesses systems that suggest misuse. These indicators come from the person’s actions, access patterns, or changes in behavior and prompt further review, monitoring, or investigation.

Monitoring Policies are the preventative controls and procedures that organizations use to detect and deter improper activity; they aren’t the warning signs themselves. A SAR is a formal report filed with regulators after suspicious activity is detected, not a label for internal indicators. Unusual Transactions can signal problems, but they aren’t specific to insider fraud by employees and can arise from many sources. Employee Red Flags directly capture the idea of internal indicators pointing to potential insider risk.

More practice questions