What is the purpose of a Fraudulent Transaction Detection System for a WEB Debit transaction?

What is the purpose of a Fraudulent Transaction Detection System for a WEB Debit transaction?

• A. To verify the transaction amount
• B. To authenticate the Receiver
• C. To process the transaction faster
• D. To ensure compliance with regulations

Answer: (B)

The purpose of a Fraudulent Transaction Detection System for a WEB Debit transaction primarily focuses on authenticating the Receiver. This authentication is crucial because WEB Debit transactions can be conducted online, making them susceptible to a higher risk of fraud. Ensuring that the identity of the Receiver is verified helps in reducing the incidence of unauthorized transactions and protects both the financial institution and the consumer from potential financial losses. Authentication processes may involve confirming personal information or utilizing multi-factor authentication methods, which are essential to establish trust that the individual initiating the transaction is indeed the authorized user. This approach mitigates fraud risks associated with online transactions, where the physical presence of the receiver is not available to verify identity in a face-to-face context. While verifying the transaction amount, processing transactions faster, and ensuring compliance with regulations are important aspects of transaction processing, they do not directly address the specific purpose of detecting and combating fraudulent activity associated with the identity of the Receiver in WEB Debit transactions.

The purpose of a Fraudulent Transaction Detection System for a WEB Debit transaction primarily focuses on authenticating the Receiver. This authentication is crucial because WEB Debit transactions can be conducted online, making them susceptible to a higher risk of fraud. Ensuring that the identity of the Receiver is verified helps in reducing the incidence of unauthorized transactions and protects both the financial institution and the consumer from potential financial losses.

Authentication processes may involve confirming personal information or utilizing multi-factor authentication methods, which are essential to establish trust that the individual initiating the transaction is indeed the authorized user. This approach mitigates fraud risks associated with online transactions, where the physical presence of the receiver is not available to verify identity in a face-to-face context.

While verifying the transaction amount, processing transactions faster, and ensuring compliance with regulations are important aspects of transaction processing, they do not directly address the specific purpose of detecting and combating fraudulent activity associated with the identity of the Receiver in WEB Debit transactions.