Final answer:
Identity theft involves wrongful acquisition and use of personal information to commit crimes such as draining bank accounts, opening new credit lines, making expensive purchases, or committing medical or tax fraud. Victims can protect themselves by securing their personal data and regularly monitoring their credit history.
Step-by-step explanation:
Identity Theft and Crime -
Identity theft, sometimes referred to as "True-name Fraud," is a serious issue where an individual's personal information is wrongfully acquired and used to commit various crimes. Here are four ways an identity thief might use someone's identity to commit a crime:
- Draining bank accounts: Thieves can use stolen information such as social security numbers and passwords to access savings and checking accounts, leading to significant financial loss for the victim.
- Opening new credit lines: Using a victim's personal information, criminals can open new credit cards or loans, rack up huge debts in the victim's name, and leave them with the financial responsibility.
- Purchasing expensive items: With access to credit cards and personal identification, thieves can make large purchases such as vehicles, electronics, or jewelry, which can severely impact the victim's credit score and finances.
- Committing medical or tax fraud: Identity thieves can use stolen identities to falsely acquire medical services or file fraudulent tax returns, causing both financial and legal problems for the victim.
To protect themselves from identity theft, individuals should be vigilant about securing personal information by using complex and unique passwords or PINs, safeguarding their mailboxes and wallets, using anti-virus software, and monitoring their credit history regularly.