Multiple Choice
Which of the following is NOT one of the components of the fraud triangle?
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6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
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Which of the following is a direct cost of a credit card data breach?
A
Decrease in future sales revenue
B
Negative media coverage
C
Paying for customer credit monitoring services
D
Loss of customer trust and reputation
Verified step by step guidance1
Understand the concept of direct costs: Direct costs are expenses that can be directly attributed to a specific activity, event, or product. In this case, the activity is the credit card data breach.
Analyze each option provided in the problem: Determine whether each option represents a direct cost or an indirect cost. Direct costs are tangible and measurable, while indirect costs are often intangible and harder to quantify.
Evaluate 'Paying for customer credit monitoring services': This is a direct cost because it involves a specific, measurable expense incurred as a result of the data breach.
Consider 'Decrease in future sales revenue' and 'Loss of customer trust and reputation': These are indirect costs because they represent long-term impacts that are harder to measure directly and are not immediate expenses.
Assess 'Negative media coverage': This is also an indirect cost because it affects the company's reputation and public perception, but it does not involve a direct, measurable financial outlay.
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