Identity theft occurs when someone unlawfully obtains and uses another person's personal information, such as their name, Social Security number, or credit card details, often for financial gain. This crime can lead to significant financial loss and damage to the victim's credit history, making it crucial to protect personal information. Victims of identity theft may face challenges in restoring their identity and credit status. They often need to report the theft to authorities, such as the Federal Trade Commission, and may require assistance from identity theft protection services to mitigate the impact of the crime.