Final answer:
Hackers commit identity theft fraud when they steal personal information from websites. This type of cybercrime has significant consequences for individuals, leading to financial loss, reputational damage, and diminished trust in various institutions. Ensuring online security and privacy is paramount to prevent such thefts.
Step-by-step explanation:
When hackers break into a website to steal users' personal information, they are committing identity theft fraud. Identity theft, also known as "True-name Fraud", occurs when someone wrongfully acquires and uses another individual's personal identification, credit, or account information without their permission. The illegally acquired information, such as a social security number, pin number, or password, is subsequently used to impersonate someone and engage in fraudulent activities.
As individuals increase their online presence, they also become more susceptible to identity theft. Large-scale data breaches, such as those at iCloud, Target, or JP Morgan, have exposed millions of people to the risk of identity theft. Not only do these breaches lead to financial loss, but they also erode trust in institutions such as banks, hospitals, and the government. These incidents underscore the vital importance of online privacy and security for both individuals and organizations.
Victims of identity theft suffer not just monetary loss, but also the challenge of restoring their reputation and credit, a process that can be time-consuming and stressful. Therefore, it is crucial to be vigilant by safeguarding personal information, using strong and unique passwords, and being cautious of suspicious links or emails.