Ethical Hacking Essentials Practice Test

Which type of identity theft involves stealing a victim's Social Security Number to file false tax returns?

1. Tax Identity Theft

2. Social Identity Theft

3. Financial Identity Theft

4. Child Identity Theft

The correct answer is: Tax Identity Theft

The correct answer is Tax Identity Theft, which refers specifically to the act of stealing an individual's Social Security Number (SSN) to file fraudulent tax returns. In this scenario, the perpetrator uses the stolen SSN to pose as the victim and claims a tax refund before the legitimate taxpayer has a chance to file their return. This type of identity theft can cause significant financial harm and complications for the victim, as they may face delays in receiving their legitimate refunds and may need to resolve issues with the IRS. The other types of identity theft listed are distinct in their targets and methods. Social Identity Theft generally involves the unauthorized use of personal information, such as names or Social Security Numbers, for various fraudulent purposes not limited to tax-related fraud. Financial Identity Theft focuses on the unauthorized use of someone's financial accounts or personal information to commit monetary fraud, particularly in banking or credit. Child Identity Theft occurs when someone uses a child's personal information to open accounts or conduct fraud, often without the parent's knowledge. Each of these types represents different motivations and methods of exploitation, distinguishing them from the specific scenario described in Tax Identity Theft.