Which of the following statements is true regarding electronic payment fraud?

The statement regarding electronic payment fraud that is true is that it’s best prevented through proper separation of duties. This principle of internal controls mitigates risk by ensuring that no single individual has control over all aspects of a financial transaction. By dividing responsibilities among multiple employees, the organization creates a system of checks and balances that can significantly reduce the risk of fraud occurring undetected. For example, one person may initiate a payment while another authorizes it, making it difficult for any single individual to commit fraud without collusion.

This practice encourages accountability and makes it easier to identify discrepancies or irregular activities, thereby improving the overall security of electronic transactions. Proper separation of duties is a cornerstone of effective fraud prevention strategies, especially in environments where electronic payments are a common method for conducting business.

Other statements do not hold accuracy in the context of fraud prevention. For instance, separation of duties is not an inefficient practice; rather, it is a critical and effective control mechanism. Additionally, electronic payment fraud can affect both online and offline transactions, showing that vulnerabilities are not limited to just one medium. Finally, while fraud detection can be complex, advancements in technology allow for real-time detection in many cases, contradicting the claim that fraud cannot be detected in real-time. Thus, the