Fraudulent Transactions in Core Banking Systems: Initial Steps

Fraudulent Transactions in Core Banking Systems

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Question

During an investigation of transactions in a core banking system, fraudulent transactions are discovered that will require the involvement of law enforcement.

Which of the following should be done FIRST?

Answers

Explanations

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A. B. C. D.

B.

The correct answer is A. Ensure evidence is preserved.

Explanation: When fraudulent transactions are discovered in a core banking system, the first step should be to ensure that the evidence is preserved. This is critical because the evidence may be needed for any subsequent legal proceedings, and any tampering or destruction of evidence may weaken the case. Therefore, the preservation of evidence should be the top priority.

Once the evidence is secured, the incident response procedures can be initiated. The incident response procedures should include notifying appropriate personnel, containing the incident, conducting a preliminary investigation, and determining the scope of the incident.

Next, the business impact should be evaluated. This is important because it will help to determine the extent of the damage caused by the fraudulent transactions and the potential financial losses.

Finally, internal audit management should be notified. The internal audit team can assist in the investigation and provide recommendations to prevent similar incidents from occurring in the future.

In summary, preserving evidence should be the first step in investigating fraudulent transactions in a core banking system, followed by initiating incident response procedures, evaluating the business impact, and notifying internal audit management.