Which of the following best describes phishing?

Prepare for the ACFE Certified Fraud Examiner (CFE) Financial Transactions and Fraud Schemes Test with our comprehensive quiz. Engage with flashcards, multiple choice questions, hints, and explanations. Ace your exam!

Phishing is primarily characterized by the attempts made by malicious entities to deceive individuals into providing sensitive information, such as usernames, passwords, or credit card numbers. This is often done through fraudulent emails, messages, or websites that appear to be legitimate. The deceptive nature of phishing exploits trust and creates a sense of urgency or fear, prompting victims to respond quickly without taking the necessary precautions to verify the authenticity of the request.

While options such as acquisition of sensitive information through compromised systems or indirect access through social engineering techniques may involve elements of phishing, they do not capture the essence of phishing as the primary act of falsely claiming to be a trustworthy source to lure the victim into divulging their private information. Physical security breaches represent other distinct types of security risks and fraud schemes that do not encompass the nature of phishing. Thus, defining phishing as false claims made by malicious entities to obtain data aligns accurately with its fundamental principles.

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