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FRM Part II · FRM Exam Part II · Case Study: Financial Crime and Fraud

A retail bank's compliance team reviews a case in which a fraudster obtains a customer's personal data through a convincing email, then uses it to open a new credit card in the customer's name. Which type of fraud does this best describe?

This is identity theft through phishing leading to application fraud. The criminal deceived the customer into revealing personal data by email and then used that identity to open a credit card. No insider, financial statement manipulation or bribery is involved.

  1. AIdentity theft through phishing leading to application fraudCorrect
  2. BInsider embezzlement
  3. CAccounting statement manipulation
  4. DBribery of a public official

Explanation

The fraudster stole personal data by deceptive email (phishing) and used it to open an account in the victim's name, which is identity theft combined with application fraud. The other options involve insiders, financial reporting or public officials, none of which appear in the scenario.

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