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What is Identity Theft? identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain. When someone steals your personal data without your knowledge or consent, it is known as identity theft. They can use this information to make a purchase, apply for credit cards, or open bank accounts in your name. Identity theft is the crime of obtaining the personal or financial information of another person to use their identity to commit fraud, such as making unauthorized transactions or purchases.