Certified AML and Fraud Professional (CAFP) Exam ACTUAL
EXAM COMPLETE QUESTIONS AND ANSWERS| Latest
2026/2027
NACHA - ✔✔✔ ANSWER-Electronic Payments Association → governing body for ACH
transactions
CPP - ✔✔✔ ANSWER-Common point of purchase. A payment card merchant location
where cards are illegally captured and used for counterfeit fraud
Straw buyer for fraud - ✔✔✔ ANSWER-The act of concealing the real purchaser of the
vehicle by using the credit of another person to get approved
Section 326 of USA Patriot Act - ✔✔✔ ANSWER-Adopts minimal standards for
customer identification when opening an acct. Must obtain name, address, DOB, and
SSN; Must verify cust ID; Must maintain records of info used for ID verification; must
refer to list of known terrorists or terrorist organizations; includes situations when
customer isn't presented (online applications)
Section 311 of USA Patriot Act - ✔✔✔ ANSWER-Authorizes Secretary of the Treasury to
require Financial Institutions to take special measures against foreign institutions &
jurisdictions deemed to be of money laundering concern
Secret Shopper - ✔✔✔ ANSWER-Victims are 'hired to be shoppers'. Fraud checks are
given for vics to deposit then remit the funds via a 3rd party transfer service to then be
reviewed. Check later returns resulting in losses
, Rules-based Solutions - ✔✔✔ ANSWER-For small to medium banks; boundaries are
pre-set based on institutions' risk appetite, volume of transactions, and risk scoring of
customers. Downsides: high false positives, only detects known patterns, constant
tuning
Whaling - ✔✔✔ ANSWER-Phishing schemes that target corporate executives
Vishing - ✔✔✔ ANSWER-Social engineering by phone to obtain PII
True name fraud - ✔✔✔ ANSWER-Fraud apps by criminals presenting themselves as
the consumer but utilizes stolen victim identities
Synthetic ID - ✔✔✔ ANSWER-Utilization of true and fictitious identity elements to
create a new synthetic individual
Society for Worldwide Interbank Financial Telecommunications (SWIFT) - ✔✔✔
ANSWER-Member owned cooperative that provides safe and secure transactions
through the use of a standardized proprietary communications platform for wires.
Spoofing - ✔✔✔ ANSWER-Disguising communication from an illicit source to appear as
though it is from a legit source
Specially Designated Nationals (SDNs) - ✔✔✔ ANSWER-Individuals or companies
owned/controlled by or acting on behalf of targeted countries, individuals, or groups
designated under programs that are not country specific
EXAM COMPLETE QUESTIONS AND ANSWERS| Latest
2026/2027
NACHA - ✔✔✔ ANSWER-Electronic Payments Association → governing body for ACH
transactions
CPP - ✔✔✔ ANSWER-Common point of purchase. A payment card merchant location
where cards are illegally captured and used for counterfeit fraud
Straw buyer for fraud - ✔✔✔ ANSWER-The act of concealing the real purchaser of the
vehicle by using the credit of another person to get approved
Section 326 of USA Patriot Act - ✔✔✔ ANSWER-Adopts minimal standards for
customer identification when opening an acct. Must obtain name, address, DOB, and
SSN; Must verify cust ID; Must maintain records of info used for ID verification; must
refer to list of known terrorists or terrorist organizations; includes situations when
customer isn't presented (online applications)
Section 311 of USA Patriot Act - ✔✔✔ ANSWER-Authorizes Secretary of the Treasury to
require Financial Institutions to take special measures against foreign institutions &
jurisdictions deemed to be of money laundering concern
Secret Shopper - ✔✔✔ ANSWER-Victims are 'hired to be shoppers'. Fraud checks are
given for vics to deposit then remit the funds via a 3rd party transfer service to then be
reviewed. Check later returns resulting in losses
, Rules-based Solutions - ✔✔✔ ANSWER-For small to medium banks; boundaries are
pre-set based on institutions' risk appetite, volume of transactions, and risk scoring of
customers. Downsides: high false positives, only detects known patterns, constant
tuning
Whaling - ✔✔✔ ANSWER-Phishing schemes that target corporate executives
Vishing - ✔✔✔ ANSWER-Social engineering by phone to obtain PII
True name fraud - ✔✔✔ ANSWER-Fraud apps by criminals presenting themselves as
the consumer but utilizes stolen victim identities
Synthetic ID - ✔✔✔ ANSWER-Utilization of true and fictitious identity elements to
create a new synthetic individual
Society for Worldwide Interbank Financial Telecommunications (SWIFT) - ✔✔✔
ANSWER-Member owned cooperative that provides safe and secure transactions
through the use of a standardized proprietary communications platform for wires.
Spoofing - ✔✔✔ ANSWER-Disguising communication from an illicit source to appear as
though it is from a legit source
Specially Designated Nationals (SDNs) - ✔✔✔ ANSWER-Individuals or companies
owned/controlled by or acting on behalf of targeted countries, individuals, or groups
designated under programs that are not country specific
