Identity Theft Risk Assessment & Prevention Flashcards

Which type of identity theft is MOST difficult to detect because it does not directly affect the victim's existing credit accounts?

Answer: Synthetic identity fraud

Synthetic identity fraud blends real and fabricated information to create a new identity, so victims may never see it on their own credit reports.

When performing a digital footprint risk assessment, which finding represents the HIGHEST exposure risk?

Answer: Mother's maiden name listed on a public genealogy website

Mother's maiden name is a common security verification question, and its public availability dramatically lowers barriers to account takeover.

A CIPA advisor recommends placing a security freeze versus a fraud alert. When is a security freeze PREFERRED?

Answer: When confirmed identity theft has occurred and no new credit is needed

A security freeze provides stronger protection by blocking new credit inquiries entirely, making it the preferred tool when no new credit is anticipated after confirmed theft.

Which behavior MOST increases an employee's risk of workplace identity theft?

Answer: Sharing login credentials with a trusted supervisor

Sharing login credentials violates security protocols and creates liability, as the other party gains access to systems containing sensitive personal data.

Which IRS program is specifically designed to reduce tax identity theft risk for individuals with prior victimization?

Answer: The IRS Identity Protection PIN (IP PIN) program

The IRS IP PIN is a six-digit number that prevents fraudulent tax returns from being filed using a victim's SSN by requiring it to process their legitimate return.

When assessing risk for elderly clients, which vulnerability is MOST unique to their demographic?

Answer: Higher likelihood of being targeted by trusted family or caregivers

Elder financial abuse and identity theft by known individuals — including family members and caregivers — is a statistically distinct and underreported risk for seniors.

A client discovers a collection account on their credit report for a debt they do not recognize. What is the FIRST recommended action?

Answer: Request their full credit reports from all three bureaus and dispute the account

Pulling all three bureau reports first establishes the full scope of the problem before taking any action, as additional fraudulent accounts may exist.