What tool can be used to establish a baseline of typical customer behavior and serve as a benchmark for spotting suspicious activity?

• A. KYC form
• B. Audit trail
• C. Risk scoring
• D. Customer profile

Answer: (D)

Creating a baseline of typical customer behavior relies on a detailed customer profile. This profile consolidates ongoing information about the client—identity, risk factors, products held, channels used, expected sources of funds, and regular transaction patterns. With this well-defined picture, monitoring systems can compare current activity to the profile and raise flags when there are deviations, signaling potential suspicious activity. Onboarding tools like a KYC form collect initial identity information but don’t capture how the customer behaves over time. An audit trail records what happened, not what is expected. Risk scoring assesses overall risk but does not by itself establish the normal baseline. Therefore, the customer profile is the most direct, effective tool for benchmarking activity.