Question

Eleanor recently visited a bank to get a car loan. Upon reviewing her credit score, the bank decided to deny her request for a car loan. Eleanor decided to check her credit report herself. There, she found three accounts that she didn’t open, and they were all past due for payment. Eleanor was a victim of:

a. Identity theft
b. Credit card fraud
c. Loan default
d. Bankruptcy

Answer 1

Eleanor was a victim of identity theft, indicated by the unauthorized accounts in her credit report.

Step-by-step explanation:

Eleanor was a victim of identity theft, which is sometimes referred to as "True-name Fraud". Identity theft occurs when someone wrongfully acquires and uses a consumer's personal identification, credit, or account information without their permission. This information, such as a social security number, PIN number, or password, is then used to commit fraud. In Eleanor's case, the discovery of unauthorized accounts in her name that were past due clearly indicates her personal information was used to open these accounts without her consent.

If Eleanor found three accounts that she didn’t open and they were all past due, then she is likely a victim of identity theft. Identity theft occurs when someone wrongfully acquires and uses a person's personal information without their permission. The thieves may use this information to make unauthorized purchases and create financial havoc for the victim. In Eleanor's case, her credit report revealed unauthorized accounts and past due payments, which are common signs of identity theft.