Final answer:
Identity theft refers to the illegal practice of using another person's private information for fraudulent purposes, often resulting in financial losses.
Step-by-step explanation:
The fraudulent acquisition and use of a person's private information, such as their name, Social Security number, is known as identity theft. This illegal practice involves acquiring sensitive personal details without permission to steal someone's identity. Victims should report the theft, change passwords, and may opt for a credit freeze. Proactive protection of personal data is essential in preventing such theft. Identity thieves often exhaust the victim's savings accounts and make large credit card purchases, leading to severe financial damage. When people discover their information has been compromised, the recommended steps include contacting financial institutions to report the theft, changing passwords, and considering a credit freeze. In response to the increasing incidents of identity theft, individuals should take proactive measures to protect their information, like using complex passwords and being cautious about sharing personal details, especially in situations like job searching where communication with strangers is common.