Certified Fraud Examiner Practice Exam 2025 – All-in-One Guide to Master Your Certification!

A signature card is primarily used to authorize transactions on a bank account. When a customer opens a new account, they are required to complete a signature card that contains their signatures. These signatures are then kept on file by the bank to verify the authenticity of signatures on checks and other transactions associated with the account.

When withdrawals are made, checks are written, or any documents require a signature for approval, the bank will reference the signature card to ensure that the signature matches one on record. This process helps protect both the bank and the customer from unauthorized transactions, affirming that only those individuals whose signatures are on file are able to conduct business on that account.

The other options relate to different banking processes: applying for a credit card involves different applications and documentation, verifying online transactions utilizes various cyber verification methods, and loan repayment agreements are typically recorded in different financial documents rather than a signature card.