Identity theft is when another person steals your identifying information and poses as you for financial gains.
"Once identity thieves have your personal information, they can drain your bank account, run up charges on your credit cards, open new utility accounts, or get medical treatment on your health insurance. An identity thief can file a tax refund in your name and get your refund. In some extreme cases, a thief might even give your name to the police during an arrest." -Federal Trade Commission
An excerpt from the Federal Trade Commission:
If you spot one of these signs, let the appropriate companies know and report your identity theft to the Federal Trade Commission, and your local police department. Freeze your credit and close your credit accounts as soon as possible. Still not sure what steps to take? This website will walk you through recovery steps based on what was lost or stolen.
Identity Theft Recovery Steps - Report an identity theft to the Federal Trade Commission and get a recovery plan.
Taxpayer Guide to Identity Theft - What is tax-related identity theft and what should you do if you're a victim? From the IRS.
Identity Theft and Fraud - Quick tips from Stay Safe Online.
How to Keep Your Personal Information Secure - Tips like shredding documents and putting vacation holds on your mail when you're away. From the Federal Trade Commission.
Data breaches happen all the time. Here's a visualization to show you. Be more wary of giving out your personal information to companies and pay attention to announcements of breaches so that you can find out if you've been affected and set up fraud alerts or freeze your credit, just in case.