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Difficulty: HardCourse of Action

Scenario: Over the past six months, the state cybercrime division has reported a 300% increase in sophisticated "CEO fraud." Cybercriminals are utilizing advanced deepfake audio and video technology to impersonate corporate executives, successfully instructing finance departments to wire massive sums of money to offshore accounts.

Courses of Action:
I. The central banking authority should immediately suspend all international corporate wire transfers until an unhackable, universally mandated deepfake detection system is installed across all financial networks.
II. Financial regulators should issue a directive requiring institutions to enforce multi-channel verification, including at least one out-of-band physical or in-person confirmation, for all corporate fund transfers exceeding a specified high-risk threshold.

Which of the proposed actions logically follows as a sound administrative remedy?

  1. A
    Only I follows
  2. Only II followsAnswer
  3. C
    Either I or II follows
  4. D
    Neither I nor II follows
  5. E
    Both I and II follow

Answer

The correct evaluation is that only the second proposed action logically follows.
The correct choice identifies that only the second action provides a balanced, feasible, and targeted administrative response. It directly mitigates the risk of digital impersonation by requiring independent, physical verification for high-risk transactions. The first action is invalid because completely suspending international commerce is an extreme, disproportionate reaction, and deploying a flawless, 'unhackable' system is technically unrealistic.

Step-by-Step Solution

1
Analyze the core problem presented in the scenario.
The crisis involves sophisticated deepfake impersonations leading to unauthorized large-scale corporate wire transfers.
A valid course of action must directly address this specific mechanism of fraud in a practical manner.
2
Evaluate the feasibility and proportionality of Action I.
Action I is rejected.
Suspending all international wire transfers indefinitely is an economically crippling, extreme measure. Furthermore, waiting for an 'unhackable' system sets an impossible standard.
3
Evaluate the feasibility and proportionality of Action II.
Action II is accepted as valid.
Mandating multi-channel and out-of-band verification for high-risk transfers adds necessary procedural friction that directly thwarts deepfake impersonation without halting legitimate commerce.

Key Concept

Evaluating Administrative Feasibility and Proportionality in Crisis Management
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