Final answer:
It is true that context is crucial when considering the sensitivity of personal identification information, as such data is susceptible to identity theft and requires diligent protection.
Step-by-step explanation:
The statement that context matters when deciding whether to treat social security numbers, driver's licenses, credit card numbers, and bank account numbers as sensitive is true. These pieces of information are highly sensitive and constitute personal identification data that can be used for identity theft or 'True-name Fraud'. Identity theft involves the illegal acquisition and wrongful use of an individual's personal data for the purpose of financial gain or other malicious intent. In response to such threats, it is essential for both individuals and organizations to safeguard this information rigorously. Measures include sharing only the minimum information required, understanding how the information will be used, who will have access to it, and continuously monitoring one's credit history for signs of unauthorized activity.