International Baccalaureate (IB) Practice Exam

If you are a victim of identity theft, what is your responsibility regarding the debt?

1. You are responsible for the total debt

2. You are only responsible for paying back half of the debt

3. You are not responsible at all

4. You must report it within 30 days to avoid payment

The correct answer is: You are responsible for the total debt

The correct understanding of identity theft in the context of debt responsibility hinges on the legal safeguards available to victims. When a person becomes a victim of identity theft, they typically are not held liable for debts incurred without their consent. Financial institutions are required to follow certain protocols to protect consumers, such as investigating fraudulent charges and resolving disputes over unauthorized transactions. Choice A, which states that the victim is responsible for the total debt, is not aligned with how identity theft laws operate. In most jurisdictions, the victim is generally absolved of the responsibility for such debts, particularly if they report the theft in a timely manner. The other choices also address misconceptions about identity theft responsibilities. Victims are not liable for half of the debt, nor are they responsible for any debts if they adequately report the identity theft. Additionally, there is no strict rule that mandates reporting within 30 days to avoid personal liability, though prompt reporting is advised for efficient resolution. In summary, the victim's responsibilities typically involve reporting the theft and monitoring their accounts, while the financial burden of fraudulent debts does not fall on them, providing essential protection against financial loss due to identity theft.