In the context of Compute And Funds Transfer Fraud, what type of loss occurs when an employee acts in good faith after fraudulent data instructions?

Study for the Certified Insurance Counselor Commercial Multiline Exam. Utilize interactive flashcards and multiple-choice questions, all with detailed explanations. Prepare thoroughly for your exam!

In the context of Computer and Funds Transfer Fraud, the correct answer pertains to loss resulting from a transfer of money. This situation arises when an employee, believing they are acting appropriately and in good faith, follows fraudulent data instructions that lead to a transfer of funds. The employee's lack of awareness about the fraudulent nature of the instructions does not negate the fact that a monetary transfer took place. This scenario typically illustrates how employees can unintentionally contribute to a fraud scheme, leading to significant financial losses for the organization.

While unauthorized access involves breaches where an external party gains entrance to a system without permission, it does not specifically relate to an employee's actions conducted in good faith. Internal theft focuses on dishonest actions by employees for personal gain, which also differs from a situation where the employee is misled. Employee negligence might suggest carelessness but does not capture the essence of being misled into executing fraudulent instructions. Thus, the loss stemming from the transfer of money effectively encapsulates the financial impact resulting from the unintentional compliance of an employee with fraudulent data.

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