Study Guide
Table Of Contents
- PayPal Certified Developer Program Study Guide
- Contents
- List of Tables
- Online Payment Processing
- Internet Security and Fraud Prevention
- Why Every Business Should Be Concerned About Internet Fraud
- Liability for Internet Fraud
- Internet Fraud: What It Is and How It Happens
- Who Is at Risk for Online Fraud
- Reducing Exposure to Fraud
- What Banks and Card Associations Are Doing to Prevent Online Credit Card Fraud
- What PayPal Is Doing to Protect Your Business Against Fraud
- Disclosure and Compliance
- PayPal Fraud Protection Services
- Review Questions
- Getting Started With Account Setup
- API Credentials
- Name-Value Pair (NVP) API
- Express Checkout
- Direct Payment API
- Transactions
- Sandbox Testing
- Answers to Review Questions
- General Reference Information
- Glossary
- Index
PayPal Certified Developer Program Study Guide March 2008 147
Answers to Review Questions
Chapter 2
A
2. List the four most common fraud-related risks facing online merchants.
– Consumer identity theft
– Merchant identify theft
– Accessing payment networks
– Chargebacks
3. Match each participant in the payment processing network to the role they perform.
4. List two actions you can take to ensure that each transaction your website accepts and
processes is valid. (Select any two.)
– Authenticate buyer when possible.
– Screen orders for fraud patterns.
– Review suspicious transactions.
Response Risk Category Potential Risk Description
7 Merchants with vulnerable security
defenses
1. Fraud attempts are higher for merchants who
advertise heavily or are in the news because
criminals know that merchants who experience high
transaction volumes have less time to defend against
fraud.
1 High-visibility merchants 2. It is difficult to validate the address or identity of
foreign buyers, and it is more difficult to investigate
and prosecute fraudulent activity from an overseas
source.
3 High-ticket goods that are easily
resold
3. These items, including luxury goods, computers, and
other electronic equipment, are most attractive to
criminals.
6 Goods that can be downloaded from
the internet
4. Criminals know that you have limited time for fraud
protection when sales volumes are high. That’s why
internet fraud triples in the fourth quarter.
2 International customer base 5. Criminals watch for special offers. They know that
you have limited time for fraud protection measures
when sales volumes are high.
4 Heavy proportion of fourth quarter
sales
6. The purchase of these goods doesn’t require physical
address information, making it easier for criminals
to disguise a fraudulent transaction.
5 Special promotions 7. Criminals take advantage of sophisticated spidering
techniques to identify merchants with network
vulnerabilities, and can then break into your network
to steal account access information for hijacking or
merchant takeovers.