Which of the following is an example of a red flag?

• A. A routine password change request
• B. Unusual new account activity
• C. A successful password reset
• D. A standard monthly statement

Answer: (B)

Red flags in fraud detection are signals that something unauthorized may be happening. Unusual new account activity fits this perfectly because it suggests actions that are atypical for the customer and could indicate someone else opening new accounts or taking over existing ones. This kind of activity typically prompts verification steps, alerts, or holds to prevent further harm.

Routine password change requests are common security measures and can be legitimate. A successful password reset may also be legitimate if the user forgot their password or is updating it for security reasons. A standard monthly statement is routine and expected. None of these alone signals fraud the way unusual new account activity does.