Personal Financial Literacy Module 4 DBA Practice Test

Choosing dumpster diving for personal records as a common practice that can lead to identity theft is accurate. This method involves sifting through discarded materials—like shredded documents, bills, and bank statements—in an attempt to find sensitive personal information that can be used to impersonate someone else. Identity thieves often look for information such as Social Security numbers, account numbers, and other personal identifiers that are typically present in these documents. By finding this information, they can commit fraud, such as opening new credit accounts in the victim's name or accessing existing accounts. The other practices listed serve to protect personal information and reduce the risk of identity theft. Securely disposing of documents helps prevent unauthorized access to sensitive information. Using credit monitoring services alerts individuals to suspicious activities on their credit reports, allowing for quicker action to prevent fraud. Regularly updating passwords enhances online security by making it more difficult for identity thieves to access accounts. Each of these alternative practices is aimed at safeguarding personal information rather than creating opportunities for identity theft.