Final answer:
The situation where someone's personal information is used by another person to commit fraud is called identity theft. It involves the illegal use of private details like social security numbers to conduct fraudulent activities, leading to financial and reputational damage. Businesses and individuals alike should take preventative measures to safeguard against data breaches and identity theft.
Step-by-step explanation:
The scenario described by the student where an individual discovers that someone is using their personal information to impersonate them and commit fraud is known as identity theft. Identity theft, also sometimes referred to as "True-name Fraud," occurs when a thief wrongfully acquires and uses a person’s personal identification, credit, or account information without their permission. With this illegally obtained information, such as a social security number or credit card details, the perpetrator can then commit various fraudulent activities.
Victims of identity theft may find their savings accounts drained and large debts accumulated on their credit cards for expensive purchases. The consequences of identity theft can be severe, leading to financial loss, damage to credit scores, and loss of trust in institutions. It is essential for individuals to take immediate action if they suspect their information has been compromised, by contacting financial institutions, setting up fraud alerts, and monitoring their credit reports closely.
Businesses and organizations are also at risk of data breaches that expose customer and employee information. Large-scale data breaches such as those at Target, JP Morgan, and Healthcare.gov highlight the critical importance of online privacy and security for both individuals and organizations. Preventative measures and improved security protocols are necessary to mitigate the risks associated with increasing our online footprint.