What is identity theft?

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Study for the EverFi Financial Literacy Test. Test your knowledge with engaging flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

Identity theft occurs when someone uses another individual's personal information, such as their name, Social Security number, credit card numbers, or other identifying details, to commit fraud or other illicit activities. This can involve taking on the victim's identity to open credit accounts, make purchases, or obtain loans without their knowledge or consent. The essence of identity theft lies in the fraudulent use of someone's identity, which is aimed at benefiting the thief at the expense of the victim.

By understanding that identity theft specifically pertains to the misuse of personal information for fraudulent purposes, it becomes clear why this option accurately captures the nature of the crime. This definition distinguishes identity theft from scenarios involving permitted or legitimate use of information or property, highlighting the criminal aspect of the act.

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