Ethical Hacking Essentials Practice Test

What type of identity theft involves using mixtures of real and fake identities for fraudulent purposes?

1. Social Identity Theft

2. Synthetic Identity Theft

3. Tax Identity Theft

4. Identity Cloning

The correct answer is: Synthetic Identity Theft

Synthetic Identity Theft involves creating a new identity by combining elements of both real and fictional information. This type of identity theft often takes advantage of legitimate personal data, such as Social Security numbers, birthdates, and addresses, combined with invented details to create a plausible identity. Criminals may use synthetic identities to open fraudulent accounts, apply for loans, or commit other forms of fraud without detection since these identities may not correspond to a real person or are challenging to trace back to the individual responsible. In contrast, Social Identity Theft typically revolves around the unauthorized use of someone's complete identity to impersonate them directly. Tax Identity Theft involves fraudulent claims for tax refunds using someone else's personal information. Identity Cloning refers to the act of completely replicating someone's identity for malicious purposes. However, synthetic identity theft specifically highlights the creative mixture of both real and fake components, making it unique among the forms mentioned.