Which security measure is designed to prevent fraudulent transmissions?

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Prepare for the Certified Compensation Professional (CCP) Electronic Transactions Association (ETA) Exam with flashcards and multiple choice questions. Each question includes hints and explanations to enhance your understanding. Get ready for your CCP exam today!

Authentication is a critical security measure in the context of preventing fraudulent transmissions. This process involves verifying the identity of users, systems, or devices before granting access to sensitive information or conducting transactions. By ensuring that only authorized individuals or systems can access or alter data, authentication significantly reduces the risk of fraud.

It typically includes methods such as passwords, biometric scans, security tokens, and multi-factor authentication. These layers of verification help to ensure that the parties involved in a transaction are legitimate, thereby safeguarding against impersonation and unauthorized activities.

While other options also contribute to security, they do not address the primary goal of verifying identities before the transaction occurs. For instance, authorization approval deals with granting permission after a user’s identity is confirmed, while transaction receipts and account creation relate more to record-keeping and user management rather than preemptively stopping fraud.

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