Mitigating Identity Theft Flashcards

What is synthetic identity theft?

Answer: Creating a new fictitious identity by combining real and fabricated personal information

Synthetic identity theft involves combining real data elements (like a legitimate Social Security number) with fake information (name, date of birth) to create an entirely new, fictitious identity for fraud.

How does a credit freeze help protect against identity theft?

Answer: It restricts access to your credit report, preventing new accounts from being opened in your name

A credit freeze restricts access to your credit report, making it impossible for identity thieves to open new credit accounts in your name since creditors cannot check your credit history.

What is credential stuffing and how does it relate to identity theft?

Answer: Using stolen username/password combinations from one data breach to gain access to accounts on other services where users reused the same credentials

Credential stuffing exploits the common habit of password reuse by automatically testing username/password pairs leaked from one breach against many other websites and services.

Why should you regularly review your bank and credit card statements for identity theft prevention?

Answer: To detect unauthorized transactions that may indicate someone is using your financial accounts

Regular statement review helps detect unauthorized transactions early, as identity thieves often start with small test charges before making larger fraudulent purchases.

What is the purpose of a fraud alert on your credit report?

Answer: It notifies creditors to take extra steps to verify your identity before approving new credit applications

A fraud alert flags your credit report to warn creditors that they should verify the applicant's identity through additional steps before opening new credit accounts.

How can data broker websites contribute to identity theft risks?

Answer: They aggregate and sell personal information that criminals can use to build profiles for identity theft

Data brokers collect and sell personal information such as addresses, phone numbers, relatives, and financial details, which identity thieves can use to answer security questions or impersonate victims.