Prep and try our CFCS valid and latest training questions & answers

A large financial institution provides both analysis and research services and investment management services. An analyst is preparing to publicly release a major report that may impact the stock prices of several large corporations. The analyst has contacted a senior compliance officer saying that one of the institution's traders has requested an advance copy of Ihe report. The analyst believes the report may allow the trader to make trades that will benefit several of his clients. The analyst is asking for advice on how to proceed.
Which course of action should be taken in this scenario?

• A. The trader's request is a breach of ethics requiring disciplinary action The trader could receive penalties including not being allowed to conduct trades on behalf of his clients for several business days
• B. The analyst should share the full report as long as the trader signs a disclosure that he will not trade on his clients' accounts based on this information
• C. The analyst should not share the full report However she can request more details on the trader's clients and trading positions and provide limited information tailored to those circumstances
• D. The analyst should not provide the full report until it is publicly released through widely accessible channelsatthat point the report can also be shared with traders inside the institution

A credit card company has recently become aware that fraudsters are obtaining multiple cards using stolen or synthetic identities II is now reviewing its card application process to identify potential weaknesses.
Which two elements in the company's application process are potential weaknesses? Choose 2 answers

• A. The company treats credit card applications from all channels (online mail unsolicited etc) the same and subjects them to the same review process
• B. Applications from geographic areas where high instances of credit card fraud have been reported in the past are subjected to a more detailed review
• C. The company verifies customer contact information using only the information from a customer's credit report
• D. The company calls the applicant to verify contact information il area codes for home, cell, and office phone numbers do not match the address on the application

An employee in a busy metropolitan branch of a large global bank has noticed that two men come into the branch nearly every day together to conduct transactions. They usually only go to a certain bank teller and appear to have a cordial relationship with her Upon doing a quick due diligence review the employee sees that the men are from Belarus and one of the customers has the same last name as the teller.
Ethically which should be the branch employee's next step?

• A. Call the confidential internal employee ethics hotline to report the suspected unethical conduct
• B. Confirm the teller is from Belarus and caution her about conducting business with account holders from her native country due to the inherent conflict of interest
• C. Contact the teller's family members and inquire about the relationship of the teller to the customers
• D. Restrict activity of the customers' bank accounts until the relationship between the teller and customers can be determined

Recently your database of customer records was compromised and hundreds of thousands of customer's personal data was stolen Based on the feedback from your customers you have surmised that the following occurred.
* Using the stolen customer information a personalized email was sent to all of the customers Irom the criminals with a significant amount of personal information in them to appear legitimate directing them to a fake website mimicking yours
* That fake website captured logins and passwords from customers for later use
* The criminals then used the logins and passwords to wire funds from those accounts to offshore accounts that they controlled Which type of attack is this?

• A. Login capture
• B. Spear phishing
• C. Man-in-the-middle
• D. Key logging

An examiner with a federal regulatory agency has been looking into complaints against a securities broker dealer who is suspected of selling fraudulent high-yield bonds to clients The broker-dealer had been offering these bonds for the last eighteen months.
A few weeks ago when several clients asked to withdraw the funds they had invested in the bonds, they received vague and seemingly evasive responses from the broker. Since then, the broker has been unresponsive and has not returned to her office.
The investigator has obtained the broker-dealer s bank account records for the past two years by court order and is currently analyzing canceled checks written on the account.
What information would the investigator be most likely to learn from reviewing these checks?

• A. The names of persons who invested in the suspected fraud scheme
• B. Persons who may have received payments (from the broker during the fraud scheme
• C. Payments from the broker's account that were reversed or stopped
• D. An approximate amount of funds the broker-dealer obtained via fraud