Certified Application Counselor Practice Test

What should consumers do if they suspect their Social Security Number or PII has been stolen?

1. Contact their local police department

2. Reach out to the FTC

3. Notify their insurance provider

4. File a lawsuit against the broker

The correct answer is: Reach out to the FTC

Reaching out to the Federal Trade Commission (FTC) is the recommended action for consumers who suspect that their Social Security Number or personally identifiable information (PII) has been stolen. The FTC serves as the primary federal agency for identity theft and consumer protection issues, providing valuable resources and guidance. When consumers report identity theft to the FTC, they can receive a personalized recovery plan and are connected with the appropriate steps to mitigate the effects of the theft. The FTC also helps track identity theft cases, which can inform broader consumer protection initiatives. Additionally, reporting to the FTC allows individuals to create a report that can be useful when dealing with creditors and other entities. While contacting local police may seem like a logical step, particularly for immediate concerns regarding criminal activity, it does not provide the same level of support and resources tailored to identity theft as the FTC does. Notifying an insurance provider may be relevant in some cases, but it does not address the underlying issue of how to further protect oneself or recover from identity theft. Filing a lawsuit against a broker would typically be a legal action taken after experiencing specific damages and is not a primary step in addressing a stolen Social Security Number or PII.