What does identity theft refer to?

Identity theft refers to the illegal use of someone else's personal information, which is often done without their consent and typically for the purpose of committing fraud. This can involve stealing sensitive data such as Social Security numbers, credit card information, or bank account details to impersonate the individual and access their financial resources or to create false accounts in their name.

Understanding identity theft is crucial in today's digital age, where personal information can be easily accessed and misused. The act emphasizes the importance of protecting personal data and being vigilant about sharing information to prevent unauthorized use. This understanding helps individuals take necessary precautions against identity theft, such as enhancing security measures on their personal accounts and being cautious about disclosing personal information online or over the phone.

The other options do not accurately capture the essence of identity theft; instead, they pertain to responsible financial practices and information management rather than illegal activities involving personal data.