Chapter 49: Operational Aspects of Cyber Crimes/Fraud Risk Management in Cyber Tech (JAIIB – Paper 2)
1. Which of the following best differentiates a fraud from a crime in banking operations?
A. Fraud always involves physical harm, crime does not
B. Crime is only related to cyber activities, fraud is not
C. Fraud is intentional deception for unlawful gain, while crime is any act punishable under law
D. Crime occurs only in financial institutions, fraud occurs everywhere
Fraud is a subset of crime involving deliberate deception for financial or personal gain, whereas crime is a broader category covering any unlawful act punishable under law.
2. A customer receives a fake email asking for net banking credentials, and later money is siphoned from the account. This is classified as:
A. Cyber fraud
B. Cyber crime only
C. Not a crime, but negligence
D. Identity verification error
This act involves intentional deception (fraud) committed using digital means (cyber crime). Thus, it is categorized as cyber fraud.
3. Which statement is true regarding fraud and crime in cyber banking?
A. All frauds are crimes, but not all crimes are frauds
B. All crimes are frauds, but not all frauds are crimes
C. Fraud and crime are identical terms
D. Fraud is a subset of crime
Fraud is a type of crime involving deception for gain, but crime includes many other acts (like theft, violence, hacking) that are not necessarily frauds.
4. An employee manipulates customer account balances to divert funds for personal use. This will be treated as:
A. Only a cyber crime
B. Both fraud and crime
C. Only an operational error
D. Only a violation of service rules
The employee’s act is intentional deception (fraud) and punishable under law (crime). Hence, it is both fraud and crime.
5. Which of the following would be classified as a crime but not necessarily a fraud in banking context?
A. Hacking into a bank server without causing financial loss
B. Forging a cheque to withdraw money
C. Phishing emails tricking customers
D. Employee altering loan documents to get sanction
Unauthorized hacking is a crime under IT Act but may not involve deception for financial gain, hence not necessarily fraud.
6. What is the first phase of an effective incident response plan in banks?
A. Containment
B. Eradication
C. Recovery
D. Preparation
Preparation is the first phase, where policies, tools, response teams, and communication protocols are set up before any incident occurs.
7. In which phase of incident response are monitoring systems used to identify potential attacks or breaches?
A. Recovery
B. Identification
C. Eradication
D. Containment
The Identification phase focuses on detecting incidents through logs, monitoring tools, alerts, and reports to confirm if a security breach has occurred.
8. Limiting the spread of a detected cyber incident to prevent further damage is called:
A. Eradication
B. Recovery
C. Containment
D. Preparation
Containment is applied immediately after detection to isolate affected systems and stop the incident from spreading further.
9. After containment, removing malware, vulnerabilities, or unauthorized access from systems is part of which phase?
A. Eradication
B. Recovery
C. Identification
D. Lessons Learned
Eradication ensures the threat is completely removed, such as deleting malicious files, patching vulnerabilities, or revoking compromised accounts.
10. Which phase of incident response involves restoring systems to normal operation and ensuring no threats remain?
A. Identification
B. Containment
C. Preparation
D. Recovery
Recovery focuses on safely restoring systems, data, and operations to ensure business continuity after a security incident.
11. The final phase of an effective incident response plan, aimed at analyzing what went wrong and improving future responses, is:
A. Recovery
B. Lessons Learned
C. Eradication
D. Containment
Lessons Learned phase documents the incident, identifies gaps, and updates policies so that future attacks can be handled more effectively.
