A loan officer telephones a bank posing as the borrower to confirm a $52,000 balance rather than asking for a signed authorization. Does impersonating the borrower to obtain bank information constitute prohibited pretexting?
Correct Answer
C) Prohibited: this obtains customer information under false pretenses
C. Impersonation to obtain this bank information is prohibited pretexting. The officer falsely represents being the customer to obtain another person's financial information. The prohibition covers attempts as well as successful acquisition; actual personal profit is not required by this provision. Scope and exceptions: The statute contains specific exceptions, including certain official investigations and institutional security activities. Routine mortgage verification by impersonating the applicant is not one of them. Obtain information through an accurately identified, properly authorized verification process instead. Source: 15 USC 6821(a), (c)–(g), 2024 edition — https://www.govinfo.gov/content/pkg/USCODE-2024-title15/html/USCODE-2024-title15-chap94-subchapII-sec6821.htm
Why This Is the Correct Answer
C. Impersonation to obtain this bank information is prohibited pretexting. The officer falsely represents being the customer to obtain another person's financial information. The prohibition covers attempts as well as successful acquisition; actual personal profit is not required by this provision. Scope and exceptions: The statute contains specific exceptions, including certain official investigations and institutional security activities. Routine mortgage verification by impersonating the applicant is not one of them. Obtain information through an accurately identified, properly authorized verification process instead.
Why the Other Options Are Wrong
Option A: Permitted, since the $52,000 figure was already in the loan application
Prior knowledge of a claimed balance does not authorize deceptive verification.
Option B: Permitted where the officer records the call and keeps it 3 years
Recording and retaining a call does not legalize the false representation.
Option D: Prohibited only where the officer profits personally from the call
It adds a personal-profit condition absent from the prohibition.
Exam Tip
A legitimate verification purpose does not justify a false identity.
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