Identity fraud involves:

Identity fraud is primarily characterized by the unauthorized use of another person's personal information, which encompasses a wide range of fraudulent activities aimed at obtaining benefits, services, or goods through deceitful means. This definition captures the essence of identity fraud, as it highlights the violation of privacy and trust that occurs when an individual's personal data is exploited without their consent.

Using someone else's personal data can lead to significant financial losses for the victim and can also severely impact their credit status and personal life. The fraudulent activities can include the opening of accounts, taking out loans, or making purchases under the victim's name, all of which require access to sensitive information such as Social Security numbers, bank account details, or other identifying information.

In contrast, other options delineate different concepts or actions that do not align with the core definition of identity fraud. For instance, using fake identities for social purposes does not typically involve malicious intent aimed at financial gain. Protecting identity against external risks relates to identity theft prevention strategies rather than the act of identity fraud itself. Establishing a false identity for insurance benefits may fall under a type of fraud, but it is narrower in scope than the comprehensive nature of identity fraud, which encompasses all unauthorized usage of personal data. Thus, the selection of the second