Identity fraud occurs when someone unlawfully uses another person's personal information, such as their name, Social Security number, or financial details, to commit fraud or deception. This can lead to unauthorized purchases, loans, or other financial activities that can severely impact the victim's credit and financial standing. Victims of identity fraud often face a long and challenging process to restore their identity and recover lost funds. They may need to report the crime to law enforcement, contact their bank, and monitor their credit reports for any suspicious activity. Preventive measures, such as using strong passwords and being cautious with personal information, can help reduce the risk of identity fraud.