Identity Theft & Prevention Flashcards

A fraudster calls a victim pretending to be an IRS agent and demands immediate payment using gift cards to avoid arrest. This is known as:

Answer: Vishing

Vishing (voice phishing) uses telephone calls to deceive victims into revealing personal information or making fraudulent payments, often impersonating government agencies.

What is the primary purpose of a credit freeze (security freeze) for identity theft victims?

Answer: Prevent new creditors from accessing the credit report to open accounts

A credit freeze restricts access to a consumer's credit report, preventing lenders from pulling the report and thus blocking new account opening in the victim's name.

Under FACTA, consumers are entitled to place an initial fraud alert on their credit file, which remains active for:

Answer: 1 year

FACTA as amended by the Economic Growth Act provides that an initial fraud alert remains on a consumer's credit file for one year.

Which of the following best describes 'account takeover' identity theft?

Answer: Gaining unauthorized control of an existing victim account

Account takeover involves a fraudster gaining access to and controlling an existing legitimate account, often by changing contact information to prevent victim notification.

The FTC's IdentityTheft.gov website is the official resource for victims to:

Answer: Create a personalized recovery plan and dispute letters

IdentityTheft.gov guides victims through creating a personal recovery plan and generates pre-filled dispute letters for creditors, debt collectors, and businesses.

When investigating identity theft, a fraud examiner should obtain which document as a foundational step in the victim's recovery?

Answer: An Identity Theft Report combining an FTC affidavit and police report

An Identity Theft Report, combining an FTC Identity Theft Affidavit with a police report, is the key document creditors and credit bureaus require to investigate and remove fraudulent information.

Child identity theft often goes undetected for years primarily because:

Answer: Children's Social Security numbers are rarely monitored for credit activity

Since children do not have credit histories that are actively monitored, fraudsters can exploit their clean SSNs for years before the victim discovers the theft, often upon turning 18.