Business Account Fraud

15 Questions

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Business Account Fraud

With the emergence of the internet, many businesses have tried to tap into online customer irrespective of areas they are in. This emergence in business has, as a result, introduced some people with ill attempt who defraud people, this can be through hacking or threats. What do you know about business account fraud? Take up the quiz below and get to find out!


Questions and Answers
  • 1. 
    • A. 

      Limited Partnership

    • B. 

      LLC

    • C. 

      Non-Profit

    • D. 

      Sole Proprietorship

  • 2. 
    2. How many owners exist for a Sole Proprietorship?
    • A. 

      As many as the owner wants.

    • B. 

      Only one owner can exist all others are listed as authorized users.

    • C. 

      There is no limit.

    • D. 

      Only two.

  • 3. 
    • A. 

      LLC

    • B. 

      Sole Proprietorship

    • C. 

      All businesses

    • D. 

      General Partnership

  • 4. 
    • A. 

      Mucho Services Business.

    • B. 

      Many Single Businesses.

    • C. 

      Money Service Business

    • D. 

      Member Service Business

  • 5. 
    • A. 

      Pet stores.

    • B. 

      Ice cream palors.

    • C. 

      Massage palors.

    • D. 

      Athletic organizations.

  • 6. 
    • A. 

      Employees stealing pens and pencils.

    • B. 

      ID Theft committed by business owner impersonators.

    • C. 

      Stolen credit cards.

    • D. 

      Stealing cash from the office.

  • 7. 
    • A. 

      Yes, but it must be run through the business inquiry and not the individual inquiry.

    • B. 

      No. We do not verify business EIN or TIN's through ChexSystems.

    • C. 

      No. As long as we have the correct paperwork we do not need to run ChexSystems.

    • D. 

      No. As long as the individual passes ChexSystems the account can be opened.

  • 8. 
    Can an EIN issued by the IRS also be used as a Social Security number?
    • A. 

      No the EIN number is only issued to one business and not a person.

    • B. 

      No. If an EIN fails or has a record returned that must be a typo.

    • C. 

      Yes. The IRS and Social Security Administration may use the same number for different purposes.

    • D. 

      No. An EIN number is only used by the IRS.

  • 9. 
    If the owner of an LLC dies, can anyone on the account close it?
    • A. 

      Yes if they are an authorized signer they can do whatever they want.

    • B. 

      No. The operating agreement specifices who has control and must be reviewed before the account is touched.

    • C. 

      Yes but the check has to be made payable to the business.

    • D. 

      Yes. The other person on the account can have all the money.

  • 10. 
    • A. 

      Yes as long as we have proper identification.

    • B. 

      Yes. If the member passes ChexSystems itis ok to open an account.

    • C. 

      No. All paperwork must be dated and all individuals on the paperwork must be verified with valid identification.

    • D. 

      Yes. The paperwork is good for the life of the business and we do not need any dates.

  • 11. 
    Is it ok to omit periods, dashes, etc. from the name of a business to make it fit on the paperwork?
    • A. 

      No if the name of the business is ABC Roofing then it has to be specifically written without periods. A.B.C. Roofing could be a completely different company and use the same initials.

    • B. 

      Yes. As long as the name of the business is written the same the punctuation does not matter.

    • C. 

      Yes. As long as the names of the people are spelled correctly it does not matter.

    • D. 

      Yes. The Department of State does not care.

  • 12. 
    Can we issue a loan to a business if the address does not match the records that the Department of State has on file?
    • A. 

      No. The address must always match.

    • B. 

      Yes. People change their addresses all the time.

    • C. 

      Yes. As long as they have the proof of address with us.

    • D. 

      Yes. We only need to verify that the primary owner has the correct address on file.

  • 13. 
    • A. 

      Yes. Most business have a P.O. Box.

    • B. 

      No. They must use a street address.

    • C. 

      Yes. As long as they have identification on them with a street address.

    • D. 

      Yes. The individual only needs to provide proof of address not the business.

  • 14. 
    When I cash a check off of a business account, what should I look for?
    • A. 

      The last check number that was paid from the account to make sure it is in range.

    • B. 

      The identification that the individual is presenting is valid.

    • C. 

      The person in front of me is the payee on the check.

    • D. 

      All of the above.

  • 15. 
    When I am not sure of the paperwork in front of me I should:
    • A. 

      Ask a supervisor for help.

    • B. 

      Wing it and hope I am right.

    • C. 

      Proceed and hope that fraud catches anything I enter wrong.

    • D. 

      Call Chuck Sanford and ask him what to do.