Which situation would be MOST indicative of a customer committing new account fraud at a bank?

Which situation would be MOST indicative of a customer committing new account fraud at a bank?

• A. opens business account with payroll soon after
• B. new account opened with immediate cash withdrawal
• C. invalid address or phone number
• D. large funds deposit and not spend for several months

Answer: (C)

This question tests how identity verification signals fraud during account onboarding. The strongest indicator is providing an invalid address or phone number. When contact details can’t be verified, the bank cannot confirm who is behind the account, which is exactly what fraudsters try to bypass with synthetic or stolen identities. That lack of verifiable identity makes the scenario the most telltale sign of new account fraud. Other patterns can raise suspicion, but they’re not as definitive. For example, starting a business account with payroll soon after could be legitimate if the business is real. Opening a new account and making an immediate cash withdrawal might occur in some legitimate cases, but isn’t as direct a failure of identity verification. A large deposit with no subsequent activity could hint at laundering in some contexts, but it doesn’t specifically indicate new account fraud on onboarding.

This question tests how identity verification signals fraud during account onboarding. The strongest indicator is providing an invalid address or phone number. When contact details can’t be verified, the bank cannot confirm who is behind the account, which is exactly what fraudsters try to bypass with synthetic or stolen identities. That lack of verifiable identity makes the scenario the most telltale sign of new account fraud.

Other patterns can raise suspicion, but they’re not as definitive. For example, starting a business account with payroll soon after could be legitimate if the business is real. Opening a new account and making an immediate cash withdrawal might occur in some legitimate cases, but isn’t as direct a failure of identity verification. A large deposit with no subsequent activity could hint at laundering in some contexts, but it doesn’t specifically indicate new account fraud on onboarding.