What constitutes 'identity theft'?

Identity theft is defined as the fraudulent acquisition of personal information without the individual's consent. This can include stealing information such as social security numbers, credit card details, or bank account numbers, which is then used to impersonate the victim for various fraudulent purposes, leading to significant financial and emotional distress for the victim.

The act of identity theft typically occurs when someone unlawfully obtains another person's sensitive information, often through means such as hacking, phishing, or stealing physical documents. The consequences of such actions can result in unauthorized access to financial resources, leading to financial loss and credit damage for the victim.

This understanding is important for financial literacy, as it underscores the need for safeguarding personal information and recognizing the risks associated with sharing sensitive data. Being aware of how identity theft occurs helps individuals take proactive steps to protect themselves and react appropriately if they become victims of such crime.