Ethical Hacking Essentials Practice Test

What method does a thief often use to create a new identity that involves elements of deception?

1. Synthetic Identity Theft

2. Identity Cloning

3. Child Identity Theft

4. Medical Identity Theft

The correct answer is: Synthetic Identity Theft

Synthetic identity theft involves the creation of a new identity by combining real and fictitious information. This method typically starts with a valid Social Security number, often belonging to children or deceased individuals, and pairs it with a fake name and other details to establish a new identity. Thieves use this fabricated identity to open bank accounts, take out loans, or even commit fraud while evading detection. The process relies heavily on deception, as the thief creates an entirely new persona that can appear legitimate to financial institutions and other organizations. This form of identity theft often goes unnoticed for longer periods, complicating the resolution when the fraudulent activity is eventually detected. In contrast to synthetic identity theft, other types like identity cloning involve directly assuming someone else's existing identity, child identity theft specifically targets minors, and medical identity theft pertains to exploiting personal health information for illegal benefits. Each of these methods involves different mechanisms and impacts compared to the deceptive creation of a synthetic identity.