CIPA Identity Theft Risk Assessment & Prevention 5

Question 1

Which scenario BEST illustrates child identity theft going undetected for an extended period?

Accepted Answer

A child is denied a student loan at age 18 due to a damaged credit history they never created

Answer

Child identity theft is often discovered only when the child reaches adulthood and applies for credit, revealing years of fraudulent accounts built on their SSN.

Question 2

When a CIPA advisor reviews a client's risk from dark web exposure, what is the MOST actionable first step?

Accepted Answer

Run a dark web scan and change passwords for any accounts with exposed credentials

Answer

Identifying which specific credentials were exposed and immediately rotating those passwords prevents criminals from exploiting the leaked data.

Question 3

Which risk mitigation strategy is MOST effective for preventing account takeover on financial institution accounts?

Accepted Answer

Using an authenticator app for multi-factor authentication instead of SMS

Answer

Authenticator app-based MFA is resistant to SIM swapping and SMS interception, making it significantly stronger than SMS-based two-factor authentication.

Question 4

A CIPA candidate is reviewing a client's EOB (Explanation of Benefits) statement for signs of medical identity theft. Which finding is a RED FLAG?

Accepted Answer

Claims for services at a provider in a city where the client has never received treatment

Answer

Services billed from an unknown geographic location are a clear indicator that someone else used the client's insurance information to receive care.

Question 5

Which federal law grants consumers the right to obtain one free credit report from each major bureau annually and dispute inaccurate information?

Accepted Answer

The Fair and Accurate Credit Transactions Act (FACTA)

Answer

FACTA, an amendment to the FCRA, established the free annual credit report right and added provisions specifically addressing identity theft protection and dispute processes.

(CIPA) Certified Identity Protection Advisor Practice Test

(CIPA) Certified Identity Protection Advisor Practice Test

CIPA Identity Theft Risk Assessment & Prevention 5