Final answer:
Identity theft is the use of stolen credentials to access private data and is often accomplished by illegally acquiring a person's personal identification, credit, or account information. Victims of identity theft can face significant financial losses and loss of trust in institutions, and taking swift action after discovering identity theft is crucial to protecting oneself.
Step-by-step explanation:
The characteristic that describes identity theft is the use of stolen credentials to access private data. Identity theft, often referred to as 'True-name Fraud,' occurs when someone wrongfully acquires and uses a consumer's personal identification, credit, or account information without their permission. This illegally acquired information, such as a Social Security number, PIN, or password, is then used to steal a person's identity. Identity thieves may drain savings accounts and charge large amounts on credit cards, purchasing high-value items such as automobiles, boats, trips, and jewelry, among other things.
Data breaches resulting in identity theft cause chaos and cost money, leading to distrust in institutions like banks, hospitals, and governments. The threat of identity theft increases with more personal information becoming available online, as shown in reports like those from the Pew Research Center. Hackers use a variety of methods to obtain personal information, from breaching data storage sites like iCloud to exploiting email communication for scams and theft.
When individuals discover their information has been stolen, they can undertake certain steps to protect themselves and mitigate the damage. This can include contacting financial institutions, monitoring credit reports, and changing passwords promptly.