To help prevent identity theft, businesses should strive to limit the personal information they collect from customers.

To help prevent identity theft, businesses should strive to limit the personal information they collect from customers.

• A. True
• B. False
• C. Only for large amounts
• D. Not necessary

Answer: (A)

Limiting the personal information collected is a practical security approach because the less data you hold, the smaller the target for theft or misuse. When a business asks for only what’s needed to complete a service, there’s less risk exposure if a breach occurs, and it’s easier to protect and securely delete data that isn’t essential. This principle, often called data minimization, supports reducing identity-theft opportunities by keeping PII to the minimum required for legitimate purposes, while also helping with regulatory compliance and building customer trust. For example, avoid collecting sensitive identifiers like social security numbers unless absolutely required, and implement strong data retention and protection practices for the information you do gather. If some data is legally required or essential for a transaction, collect only that and safeguard it diligently.

Limiting the personal information collected is a practical security approach because the less data you hold, the smaller the target for theft or misuse. When a business asks for only what’s needed to complete a service, there’s less risk exposure if a breach occurs, and it’s easier to protect and securely delete data that isn’t essential. This principle, often called data minimization, supports reducing identity-theft opportunities by keeping PII to the minimum required for legitimate purposes, while also helping with regulatory compliance and building customer trust. For example, avoid collecting sensitive identifiers like social security numbers unless absolutely required, and implement strong data retention and protection practices for the information you do gather. If some data is legally required or essential for a transaction, collect only that and safeguard it diligently.