How does identity theft differ from identity fraud?

The distinction between identity theft and identity fraud lies primarily in the nature of the actions involved. Identity theft specifically refers to the unauthorized acquisition and use of someone's personal information, typically to commit fraud or other criminal activities. This can include stealing someone’s Social Security number, credit card details, or any other sensitive data that enables the perpetrator to impersonate the victim.

In contrast, identity fraud refers more broadly to the activities that result from identity theft, including the act of using that stolen personal information to commit crimes such as fraudulently opening credit accounts, making purchases, or obtaining services. The emphasis on unauthorized use of personal information captures the essence of identity theft effectively, highlighting how it sets the stage for the subsequent fraud.

The other options do not accurately represent the nuances of these terms. For instance, identity theft does not necessarily involve physical theft (such as stealing a wallet), and identity fraud can involve serious criminal activity. Additionally, treating both terms as synonymous undermines the understanding that identity theft is the act of taking someone's personal data, while identity fraud is the misuse of that data. Recognizing this distinction is crucial for managing and mitigating risks associated with these crimes.