Future Business Leaders of America (FBLA) Business Law Practice Exam

What is identity theft?

1. The act of creating a false identity for legal purposes

2. Using a computer to steal personal data for financial gain

3. Illegally obtaining someone's personal identification documents

4. The process of protecting personal information online

The correct answer is: Using a computer to steal personal data for financial gain

Identity theft refers to the act of stealing someone's personal information, typically for the purpose of committing fraud, particularly financial fraud. The chosen answer highlights the use of computers in this crime, which is increasingly common in today's digital age. Criminals may use various techniques, such as phishing or hacking, to access sensitive information like Social Security numbers, bank account details, and credit card information. Once they obtain this data, they can impersonate the victim to make unauthorized transactions, apply for loans, or engage in other activities that can lead to significant financial loss for the victim. The other options do not accurately encapsulate the concept of identity theft. Creating a false identity for legal purposes may involve deception, but it doesn't necessarily involve stealing someone else's information. Illegally obtaining personal identification documents is a form of identity theft but doesn't encompass the full scope of actions that can be included, such as using personal data in different ways. Protecting personal information online is the opposite of identity theft, as it focuses on preventing such crimes rather than defining them. Therefore, emphasizing the aspect of using a computer to illegally retrieve personal data for financial gain best aligns with the comprehensive understanding of identity theft.