Certified Identity Theft Risk Management Specialist (CITRMS) Practice Exam

Synthetic identity theft is a form of identity theft that involves the creation of a new identity by combining elements from different real individuals, such as names, Social Security numbers, and other personal information. This type of identity theft is particularly insidious because it can be difficult to detect until significant damage has been done, as the new identity may not be directly linked to any one victim in a straightforward manner.

This method allows the perpetrator to exploit the created identity to commit fraud, particularly with financial institutions that may extend credit based on the fabricated identity. It often involves the use of a Social Security number that may belong to a child or an individual who does not have active credit, which minimizes the chances of detection at the onset of fraudulent activities.

In contrast, the other options refer to different forms of identity theft. Identity theft broadly encompasses various forms of stealing personal information, account takeover involves hijacking an existing account by using a victim's credentials, and credit card fraud specifically relates to unauthorized use of someone else's credit card information. Therefore, the choice of synthetic identity theft accurately describes the specific act of creating a fictitious identity using elements of real individuals' information.