If you suspect a customer is attempting to defraud the company, what is the correct course of action?

• A. Follow policy, verify information discreetly, and escalate to the appropriate department.
• B. Ignore the suspicion until proven.
• C. Confront the customer publicly.
• D. Disclose the issue to other customers.

Answer: (A)

When you suspect fraud, handle it by following your organization’s policy, verify the information discreetly, and escalate to the appropriate department. This approach protects everyone involved, preserves privacy, and creates a documented trail for investigators. Verifying discreetly means checking relevant records and data without tipping off the customer, so you can confirm whether there’s a pattern or red flags while keeping sensitive information secure. Escalating to the right team—such as fraud prevention, security, or compliance—ensures trained professionals take the appropriate next steps and maintain proper controls.

Other options undermine safety and trust: ignoring the suspicion leaves potential fraud unchecked and could expose the company to loss; confronting the customer publicly can create unnecessary risk and potential reputational harm; disclosing the issue to other customers violates confidentiality and could cause panic or misinformation.