What common practice increases the risk of identity theft by enabling easier access to personal information?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

Study for the Personal Financial Literacy Module 4 DBA Test. Discover valuable flashcards and multiple choice questions, each crafted with hints and insights. Be ready to ace your exam and build financial confidence.

Using the same password for multiple accounts significantly increases the risk of identity theft because it creates a vulnerability across all accounts tied to that password. If a hacker gains access to one of your accounts through methods such as phishing or data breaches, they can use that same password to access other accounts you have, including email, banking, and social media.

This practice makes it easier for criminals to exploit personal information, as they can potentially navigate from one compromised account to another. Creating unique passwords for each account is crucial as it limits the access a thief has to your information if one password is compromised. Regularly changing passwords and employing two-factor authentication are best practices that further enhance security, but the act of reusing passwords is inherently risky and should be avoided. Setting strong, unique passwords for each account is a fundamental step in reducing the likelihood of identity theft.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy