CIPA Identity Theft Risk Assessment & Prevention 4

Question 1

Which risk factor is MOST associated with new account fraud following a large-scale data breach?

Accepted Answer

The type of data exposed, specifically SSN plus date of birth

Answer

SSN combined with date of birth provides the core identity elements needed to open new credit accounts, making this combination the most dangerous breach exposure.

Question 2

Under the Fair Credit Reporting Act (FCRA), how long does a credit bureau have to investigate a consumer's dispute of a fraudulent account?

Accepted Answer

30 days (or 45 if additional information is submitted)

Answer

The FCRA mandates a 30-day investigation window, extendable to 45 days if the consumer provides additional relevant information during the dispute process.

Question 3

Which preventive measure MOST effectively reduces risk from mail theft of financial documents?

Accepted Answer

Switching all statements to paperless delivery and using a USPS-informed delivery account

Answer

Paperless delivery eliminates the physical document entirely, and USPS Informed Delivery provides digital previews so the client knows what should arrive — a dual-layer solution.

Question 4

A client is a gig economy worker who frequently uses public Wi-Fi. Which tool MOST directly mitigates their network-based identity theft risk?

Accepted Answer

A virtual private network (VPN) with encryption

Answer

A VPN encrypts all internet traffic, preventing man-in-the-middle attacks on public Wi-Fi that could capture login credentials and personal data.

Question 5

When assessing business identity theft risk for a small business owner, which exposure is MOST commonly overlooked?

Accepted Answer

The business's EIN being publicly listed in state registration records

Answer

State business registrations are often public records that expose the EIN, which criminals use to open fraudulent credit lines in the business's name.

(CIPA) Certified Identity Protection Advisor Practice Test

(CIPA) Certified Identity Protection Advisor Practice Test

CIPA Identity Theft Risk Assessment & Prevention 4