Final answer:
The statement is true; providing false information or refusing to show ID is a red flag suggesting possible suspicious activity like identity theft. Protecting one's personal information and monitoring credit history are vital to preventing such fraud.
Step-by-step explanation:
True; When a customer provides false information or refuses to provide their ID, it is indeed a red flag that may indicate suspicious activity, potentially linked to identity theft or True-name Fraud. Identity theft involves wrongfully acquiring and using a person's personal identification information without permission.
This can lead to significant financial harm as thieves may deplete the victim's savings or incur substantial debt in their name. It is essential to provide only the minimum information requested, understand why it's being collected, how it will be used, and who will have access to it, to reduce the risk of identity theft.
Additionally, it's advisable to monitor your credit history regularly for any red flags that suggest your identity has been compromised.