Financial identity theft often involves which of the following actions?

• A. Using an individual's stolen credit card to purchase goods
• B. Impersonating an individual to gain access to the individual's bank account
• C. Using an individual's personal information to open a new credit card account
• D. All of the above

Answer: (D)

Financial identity theft involves criminals using someone’s personal or financial information to commit fraud. The three examples show different avenues thieves pursue: using a stolen credit card to make purchases, impersonating the person to gain access to their bank account, and using their information to open a new credit card account. Each represents a legitimate way to misuse someone’s financial identity, so all of these actions together illustrate how broad and varied this type of theft can be. This is why the best answer is that all of the above describe financial identity theft. Monitoring account statements and credit reports, and reporting suspicious activity, are essential defenses because thieves can exploit multiple routes.