Final answer:
Identity theft occurs when someone uses personal identification like social security numbers, pin numbers, or passwords without permission, often resulting in financial loss and a lack of trust in financial and governmental institutions.
Step-by-step explanation:
The scenario described where thieves hijack your name and identity to use your good credit rating to obtain cash or make purchases is known as identity theft. This is also sometimes referred to as "True-name Fraud." Identity theft involves someone wrongfully acquiring and using a consumer'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 then used to commit fraud and other crimes, often leading to financial loss and a breach of personal security. Victims of identity theft can find their savings accounts drained and large debts accrued on their behalf, significantly impacting their financial stability and trust in various institutions.
For instance, when you're looking for a job and communicating with unknown entities, you become particularly vulnerable to scams and identity theft. It's crucial to safeguard your personal information to prevent such occurrences.