Final answer:
Lost productivity is the cost of identity theft that primarily impacts businesses. This includes the time and resources spent to respond to the theft and restore services. Legal fees, credit monitoring, and fraudulent charges can affect both individuals and businesses.
Step-by-step explanation:
Among the options provided, the cost of identity theft that primarily applies to businesses, rather than to the victim whose identity has been stolen, is C) Lost productivity. Legal fees and credit monitoring are expenses that can be incurred by both victims and businesses. Fraudulent charges are typically initially borne by the victim, but can also impact businesses in the form of chargebacks or merchandise/service losses. However, lost productivity is distinct as it reflects the direct impact on a business's operations. This includes the time and resources spent in responding to the incident, restoring systems, and possible temporary cessation of services, which is not something usually shouldered by individual victims.
Identity theft, also known as 'True-name Fraud', can be devastating for individuals, leading to the draining of savings accounts and the accumulation of debt. However, the repercussions on businesses are significant as well – with identity theft leading to direct financial losses as well as damaged reputation, reduced customer trust, and an overall compromise in their security systems that might even impact national security. The indirect costs such as lost labor hours and potential turnover from burnout among employees tasked with remediating the issue are notable impacts on productivity.