Asked by Jamie Samala on Jul 09, 2024
Verified
How does a bank verify the signature of its customers?
A) By the substitute check held by the bank for reference purposes
B) By the signature card filled in by the customer when the account is opened
C) By the signature provided in documents such as passports,ID cards,etc.
D) By the pin number provided by the bank with the ATM card
Signature Card
A document signed by an account holder at a financial institution, providing a specimen signature for verification purposes.
- Comprehend the consequences of identity theft and the methodology for validating signatures.
Verified Answer
NP
Noorfatihah PirdausJul 16, 2024
Final Answer :
B
Explanation :
Banks typically verify the signature of their customers by comparing it to the signature card filled in by the customer when the account is opened. This ensures that the signature on any subsequent documents, checks or transactions matches the customer's original signature on file, and helps prevent fraud. While other methods such as substitute checks, ID cards and pin numbers may be used for additional security measures, they are not typically used as the primary method of signature verification.
Learning Objectives
- Comprehend the consequences of identity theft and the methodology for validating signatures.
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